Homework CH 14 - Spring 2021 3 142 pont Wendell's Donut Shoppe is investigating the purchase of a new $47.300 donut making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $6,300 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,600 dozen more donuts each year. The company realizes a contribution margin of $1.50 per dozen donuts sold. The new machine would have a six-year useful life Click here to view Exhibit 1401 and Exhibit 148-2. to determine the appropriate discount factoris) using tables Required: 1. What would be the total annual cash intlows associated with the new machine for capital budgeting purposes? 2. What discount factor should be used to compute the new machine's internal rate of retum? (Round your answers to 3 decimal places.) 3. What is the new machine's internal rate of retur? (Round your final answer to the nearest whole percentage) In addition to the data given previously, assume that the machine will have a 513,605 Salvage value at the 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 rero) (Round your final answer to the nearest whole percentage.) woor Hint Pret lo Reference 1 Annual cash into 2 Discount factor 3 Internal rate of reum 4 Inmatrate of retum 00 200 000 000 000 000 0005 000000000000000000000000000000 tot 00 00 00 00 00 0000 000064 01 000 000 000 OO 0000 0004 000 000 000 000 03 02 05 010 00 00 00 00 00 00 00 29 0000 0000 000 000 000 000 000 000 0341 020 000 00000000000000000029 030 000 000 000 000 000 22 24 20 Co doo 0 0 0 0 0 0 0 0 0 0 0 0 0 OCD O 0000000000000000000000000000 000000000000000000000000000 00 Once 0000000000000000000000000000 0000010 O COOP 2000 000 000 DOD DO 5000000000 O VLOD COCO 1000000 20000 000 000 000 CHOROO ISO 100 0000 000 000 000 000 000 000 100 O SOCO 000 0000 000 0000 000 000 000 000 OLD DOO 10000 1000 000 000 000 000 000 000 0 000 90000 OE COCO COD WOD 00 00 00 00 00 00 00 00 OOOOOOOOOOO 00 00 00 00 00 00 00 00 00 00 O O O O O OO GOOD SOD 100 000 000 CADOMO 0510 SOCO BOSO SOCO LIDOCO BED COOOOOOOOOOO OM 30 9000 900 DD 250 DOO 100 POUCO DELO 00000000000000550045 Cou 0125 1000 0104 0.000 0.000 000 000 ON 050 025 63080326929002500229 0204 0112 000 15000 01310 25 095 04 0.9970356 0.39 0.21 0.357 0231 0200001 1 37026000 014 070015051205040.500 000042 03 04 03 0.30 024 0.20 0.20 0223 2004 0100100055 014 01 0.677 007 052 050 050296700404 0376 01 0202 030 0.250 200 200 00 01 020 0191 09 0100 0.700 GO CO SOSIO 2020 O OOO OSCOSOCO 600 250 000 OM 10 TOOD OCCO 20 EO CSCD COCOYO WODOO 1900 190 11 TO CLO ROHO SEZO 20 DO DO OVO SVO STOC 050 000 000 2 SZOBOZO CO GO SOCO DICO DOO WOWO 2010 SORO DO 9000 COLOGO sero SSCO DE 300 COPD OD 50 DO 250 DO 1000000 5 1 07 02200341 050023 0.792 0700 0733 000 0000 0000 000 000 000 45 04 03 0410 0803016103000794 0.72 071 072 0675 58 0641 064 09050050 GST 053 0502 05 0907 09008730957 026 0097 0.750 075603071 070 0672 01 0050 604 090292 094 093 092 091 0000S 00760862155 00 00 00 00 00 0000 000 201 2020 225 235 10 115 145 7 2 1 w M w DOBIT 404 Pawlue of the EXHIBIT 140-2 Pretant Value of an annuty of ST in Area Peninas 14 8 9% 124 154 20 72 22 25 0362 0.95 064 0905 02 0917 0.909 0.901 0.893 0.05 0.870 08620 OO 00026082000306 0000 12 1.00 5833 1200 1783 17 1690 160 1667 1626 1505 155 156 157 15001012714571410 3 127 2673 2024 2577 2.531 2407 244 24022301 222 2200 220 2200 2174 2100 2105 2.044 2042 2011 1981 1952 4 EO 3.352 2312 3.240 200 302 3037 2:9742.92155 2702743 2090 2,639 2.509 2510 2494 2445 2.404 22 5 4452 129 4212 4100 11.00 5701 10011605 357718333352 1278 319 327 10582091 2926 2964 2.003 27452609 2242 5070 497 4207 6.620 2355 4221 4:11 1990 1989 3734100349 348 34103203.245 27 102 1020 2951 002 S2 5.20 501 8472 4564 403 4288 41604039 3922330635053508 345 3327 32421101 5971 5747 55 5335 545 4.950 4.799 299 4487 36 207 20783554 3837 272515935181421 332 7435 100 6.000 6516 6247 5.995 5.7595577 532 532946 4772 4602 459 430 4160 400 2905 1736 173156631 1220 7300 7024 10 610 615 5.895.650 5.626 521 5019 4831349443094182 40543923702602357 BOB 7837 799 7130 6305 5.495 6.207 590 5.657 553 5234 5029 4646564456 427 47 40352023762056 86 25.36 7800 5.0 6.42 6 5098 5560 525197 98 4791 4.0 427 427 305 3051 1735 05125 1904 74 700.7500402256425505342 5110 4.99043624700 1901750 14 80130 1745 7736 73676902 6.25 6.302 0.002 57245450225 500 400 40 462 205400 306212 1111 1020 9700 650 7000 2100 61 6.4626112594755755304509248765740943155 400t 1354 10 110 10.10100 8858 0313 70423769746.604 6265 5954 55 405 510 493847304536435450 403318 12100 274 10 9763 902 1.02275499120 57296 0752405.075522 495047557543 4219 4050 110 12000000000272 750 1201 77022250 640 6457 6128555315273503344608 409 42434080 2520 DIA 1200511158 09600 3050530 73566.938 650 1985.11775534 5.500 450 4635 42 426 40352 230 150 20211470 0549 9029 351 293 740 7025 662 6.250 5295628 5.353 5101 40 46574402740 21 14039211764 16.01 292 8649 07575627102 6.687 6312 5973 5.605 451 459 4675 406 42934021 2000 14450 133 12.042 1061 10.2010 3.7720 7645190 674356 01100005429 4900 4000 4000 400 1970 22 14857 12.30311272 10371 9500 31.206 7710 72306792 62996046 572 562 5567 1905 703 4.000 1920 20 15.247 27991255011409 10.529 9707 8.90550 71542200 633 644 con 5765 5:4515113 491470 507 401981 15.6221409412703 1654 106759823 27 227637220 6373451695766 559354721 1514 232302 SOS 15.93 14.375 13003 1201000929 B 710 73726906 1 55405 206 49567284520 13284151 13304633211 1970995027922740 741210093551365790 542 525 4964 473 4524 41543.900 28 10663140984062132 11001110 307 602 79047441 6.16.536 6153503502 5223 073045204335415 29 36 90+ 15.11 15022711111511 000 01650 3002 7470 5.90 6.651 6166 5820555220 49750045311591994 30 17.292 15.11211705 2.400 112582749278.600 3055749610035 582950527549794746558399 1929310 1506 2 1925 1075 0770951 2704705664265.65 5 525049915052304661 ANNONS