Question: PLEASE HELP ME UNDERSTAND THIS PROBLEM IN EXCEL WITH ALL THE EXCEL FORMULAS. Henries Drapery Service is investigating the purchase of a new machine for
PLEASE HELP ME UNDERSTAND THIS PROBLEM IN EXCEL WITH ALL THE EXCEL FORMULAS.
| Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $151,640, including freight and installation. Henries has estimated that the new machine would increase the companys cash inflows, net of expenses, by $40,000 per year. The machine would have a five-year useful life and no salvage value. |
| Required: |
| 1. | Enter the Excel formula inputs and compute the machines internal rate of return. |
| 2. | Suppose that the new machine would increase the companys annual cash inflows, net of expenses, by only $36,000 per year, instead of $40,000 per year. Enter the Excel formula inputs and compute the machines internal rate of return. |
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