Exercise 12-3 (Algo) Internal Rate of Return [LO12-3] Wendes's Donut Shoppe is investigating the purchase of a new $42,900 donut-making machine. The new machine would permit the company to reduce the amount of pait-time help needed, at a cost savings of $5.800 per yeac. In addition, the new mach permould allow the company to proctuce one new style of donut, resulting in the sale of 2.000 dozen more donuts each year. The company realizes a contribution margin of $2.00 per dozen donuts sold. The new machine would have a six-year useful life. Click here to viow Exhipit 128-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using tables Required: 1. What would be the total annual cash inflows associated wath the new machine for capital budgeting purposes? 2. What discount factor should be used to compute the new machine's internal rate of retian? (Round your answers to 3 decimal places.) 3. What is the new machine's internal rate of return? (Round your final answer to the nearest whole percentage.) 4. In addition to the data given previously, assume that the machine wil have a $16,575 salivage value at the end of ax years. Under these conditions, what is the internal rate of return? (Hint. You may find it helpful to use the net present value approschy find the discount fate that will cause the net present value to be closest to zero) (Round your final answer to the nearest whole percentage.) EXIIIstI t214-1 Provent Value of 51.1(1+r)n