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KQuestion 1 (of 5) Wendell's Donut Shoppe is investigating the purchase of a new $47,300 donut-making machind The new machine would permit the company to

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KQuestion 1 (of 5) Wendell's Donut Shoppe is investigating the purchase of a new $47,300 donut-making machind 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 sik-year useful life. Click here to view Exhibit 13B-1 and Exhibit 1382, to determine the appropriate discount factor(s) using tables Required 1 What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? Annual savings in part-time help Added contribution margin from expanded sales Annual cash inflows 6,300 3,900 S10.200 Type here to search

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