Exercise 7.3 (Algo) Internal Rate of Return [LO7-3] Wendell's Donut Shoppe is investigating the purchase of a new $31,300 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $5,300 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1,300 dozen more donuts each year. The company realizes a contribution margin of $3.00 per dozen donuts sold. The new machine would have a six-year useful life. Chick here to view Exhifit 781 and Exhibit 782, to determine the appropriate discount factor(s) using tables. Required: 1. What would be the fotal annual cash inflows assoclated with the new machine for capital budgeting purposes? 2. What discount factor should be used to compute the new machine's internal rate of return? Note: Round your answers to 3 decimal ploces. 3. What is the new machine's internal rate of return? Note: Round your finol onswer to the nearest whole percentoge. 4. In addition to the data given previously, assume that the machine will have a $12.820 salvage value at the end of six years. Under these conditions, what is the infernal 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) Note: Round your final answer to the nearest whole percentage