Exercise 8-3 Internal Rate of Return [LO8-3] Wenders Donut Shoppe is investigating the purchase of a new $34.600 donul-making machine. The new machine would permit the company to reduce the amount of part-time he 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 life Click here to view Exhib0.1 and ExhL002. to determine the appropriate discount factors) using tables Required: 1. What would be the total annual cash intlows associated with the new machine for capital budgeting purposes? Annual savings in part time help Added contribution margin from expanded sales Annual cash inflows 2. Find the internal rate of retum promised by the new machine (Round your 'IRR' answer to nearest whole percentage) Internal Rate of Retu Chose Denominator - Factor Choose Numerator Number of years Internal rate of return Type here to search A | 08 a + 11:46PM ENG /11/2016 9 H 2 3. In addition to the data given previously, assume that the machine will have a $14.000 salvage value at the end of six years. Under these conditions compute the internal rate of return (Round your final answer to nearest whole percentage.) Internal rate of retum References eBook & Resources Worksheet Dy Easy the Exercise - Internal Rate of Retum (LO8-31 t eng Cove 0-0 acceptably on e the entrate of the A Type here to search ENG 14 PME 10/17/20792 WERIYOPITY