Exercise 12-15 Internal Rate of Return and Net Present Value (L012-2, LO12-3) Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $126,175, including freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net of expenses, by $35,000 per year. The machine would have a five-year useful life and no salvage value. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Required: 1. What is the machine's internal rate of return? (Round your final answer to the nearest whole percentage.) 2. Using a discount rate of 12%, what is the machine's net present value? 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $32,435 per year. Under these conditions, what is the internal rate of return? (Round your final answer to the nearest whole percentage.) 1. Internal rate of return 2. Net present value 3. Internal rate of return %