1 Exercise 12-3 Internal Rate of Return [LO12-3] Wendell's Donut Shoppe is investigating the purchase of a new $34,600 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $6,500 per year In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,500 dozen more donuts each year The company realizes a contribution margin of $1 60 per dozen donuts sold. The new machine would have a six-year useful lfe. escck Click here to view Exhilt 128-1 and Exhibit 128-2 to determine the appropriate discount factioris) using tables eferencesRequired What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? 2 What discount factor should be used to compute the new machine's intenal rate of retum? (Round your answer to 3 decimal ploces) 3 What is the new machine's internal rate of return? (Round your finel answer to nearest whole percentageJ 4,n additon tothe data ven previously, asume that the machine ma have a $t3.755 salvage vahatthe end of six years Under these conditions, what is the internal rate of return?(Hint You may find it helpful to use the net present value approach find the discount rate that will cause the net present value to be closest to zero J (Round your finsl answer to neerest whole percentage) Type here AR Alt