please help with 1-4
Wendeli's Donut Shoppe is investigating the purchase of an $39,600 donut-making machine with a six-year useful life. The new machine would reduce labor costs by $5,400 per year in addition, it 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 $2.00 per dozen donuts sold. Ctick here to view Exhibit 14B-1 and to determine the appropriate discount factor(s) using tables. Required: 1. What are the new machine's total annual cash inflows? 2. What discount factor should be used to compute the new machine's internal rate of return? Note: Round your answer to 3 decimal places. 3. What is the new machine's internal rate of return? Note: Round your final answer to the nearest whole percentage. 4. In addition to the dota given previously, assume the machine will have a $11,780 salvage value at the end of six years. Under these conditions, what is the internal rate of return? (Hint: You may find it heipful to use the net present value approach, find the discount rate that will cause the net present value to be ciosest to zero.) Note: Round your final answer to the nearest whole percentage. Wendeli's Donut Shoppe is investigating the purchase of an $39,600 donut-making machine with a six-year useful life. The new machine would reduce labor costs by $5,400 per year in addition, it 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 $2.00 per dozen donuts sold. Ctick here to view Exhibit 14B-1 and to determine the appropriate discount factor(s) using tables. Required: 1. What are the new machine's total annual cash inflows? 2. What discount factor should be used to compute the new machine's internal rate of return? Note: Round your answer to 3 decimal places. 3. What is the new machine's internal rate of return? Note: Round your final answer to the nearest whole percentage. 4. In addition to the dota given previously, assume the machine will have a $11,780 salvage value at the end of six years. Under these conditions, what is the internal rate of return? (Hint: You may find it heipful to use the net present value approach, find the discount rate that will cause the net present value to be ciosest to zero.) Note: Round your final answer to the nearest whole percentage