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Please someone help me to solve it. thank you Wendell's Donut Shoppe is investigating the purchase of a new $31,300 donut-making machine. The new machine
Please someone help me to solve it. thank you
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 n resulting in the sale of 1,300 doze 53 00 per dozen donuts sold. The new machine would have a six-year useful life, n more donuts each year. The company realizes a contribution margin of Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) usi tables ng Required: 1. What would be the total annual cash inflows associated wi th 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 return promised by the new machine to the nearest whole percent. Internal Rate of Return hoose Numerator: Choose Denominator: Factor Number of years Internal rate of return Factor the end of six years. Under these conditions, compute the internal rate of return to the nearest whole percent. (Round your final answer to nearest whole percentage.) Internal rate of returnStep by Step Solution
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