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Wendell's Donut Shoppe is investigating the purchase of a new $32,400 donut-making machine. The nevw machine would permit the company to reduce the amount of

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Wendell's Donut Shoppe is investigating the purchase of a new $32,400 donut-making machine. The nevw machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $6,700 per year. In addition, the new machine would allow the company to produce one new style of donut resulting in the sale of 1,600 dozen more donuts each year. The company realizes a contribution margin of $2.60 per dozen donuts sold. The new machine would have a six-year useful life Click here to view Exhibit 13B-1 and Exhibit 13B-2, 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 2. Find the internal rate of return promised by the new machine to the nearest whole percent Internal Rate of Retur Factor Factor Choose Numerator: Choose Denominator: Number of vears Internal rate of return 3. In addition to the data given previously, assume that the machine will have a $14,180 salvage value at 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.) nternal rate of return

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