Exercise 14-15 (Static) Internal Rate of Return and Net Present Value [LO14-2, LO14-3] Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost \$137,320, including freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net of expenses, by $40,000 per year. The machine would have a five-year useful life and no salvage value. Click here to view Exhibit 1481 and to determine the appropriate discount factor(s) using toble. Required: 1. What is the machine's internal rate of return? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12%.) 2. Using a discount rateyof 14%, what is the machine's net present value? Interpret your results. 3. Suppose the new mochine would increase the company's annual cash intlows, net of expenses, by only $37,150 per year, Under these conditions, what is the internal rate of return? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12%.)