Exercise 12-3 (Static) Internal Rate of Return [LO12-3] Wendelis Donut Shoppe is irvestigatine the purchase of a new $18,600 donut-making machine. The new machine would permit the company to reduce the amount of part-tme help needed, at-a cost saving 5 of $3,800 per yerar. In addition, the new machine would alsow the company to produce one new style of donut, resulting in the sale of 1.000 dozen more donuts each year. The cornpany realizes a contribution matgin of $120 per dozen donuts sold. The new machine would have a six-year useful life. Click here to view Exhibl1128.1 and Exhbit12B.2, to determine the appropriate discount factor(s) tising fables. Reculred: 1. What wothl be the total annual cash inflows associated with the new machine for capital budgeting purposes? (Round your final ariswer to the nearest whole dollar amount.) 2. What discount factor should be used to compute the new machine's internal rate of retuin? (Round your answers to 3 decimal ploces.) 3. What is the new machines internal rate of return? (Round your answer to the nearest whole percentage, l.e. O.123 should be considered 0512% ) A. in addition to the dota given previously, assume that the machine will have a $9,125 salvage value at the end of six years Under these conditions, what is the intemal rate of return? (Hint: You may find it hedpful to use the net present value approach, find the discount rote that will cause the net present vilue to be dosest to zero.) (Round your answer to the nearest whele percentoge, i.e. 0.123 should be considered as 12% )