Wendell's Donut Shoppe is investigating the purchase of a new $$18,600$ donut$-$making machine. The new machine would permit the company to reduce the amount of part$-$time help needed, at a cost savings of $$3,800$ per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of $1,000$ dozen more donuts each year. The company realizes a contribution margin of $$1\mathrm{.}20$ per dozen donuts sold. The new machine would have a six$-$year useful life.

Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?

Note: Round your final answer to the nearest whole dollar amount.

What discount factor sho$$ld be used to compute the new machine's internal rate of return?

Note: Round your answers to $3$ decimal places.

What is the new machine's internal rate of return?

Note: Round your answer to the nearest whole percentage, i$.$e$.0\mathrm{.}123$ should be considered as $12\%.$

In addition to the data given previously, assume that the machine will have a $$9,125$ 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 zero.$)$ Note: Round your answer to the nearest whole percentage, i$.$e$.0\mathrm{.}123$ should be considered as $12\%.$