{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T02:44:08-04:00", "answer_date": "2024-06-29 02:44:08", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4451842", "url": "\/study-help\/questions\/wendells-donut-shoppe-is-investigating-the-purchase-of-a-new-4451842", "question_creation_date_js": "2024-06-29T02:44:08-04:00", "question_creation_date": "Jun 29, 2024 02:44 AM", "meta_title": "[Solved] Wendell's Donut Shoppe is investigating t | SolutionInn", "meta_description": "Answer of - Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donutmaking machine. The new machine would permi | SolutionInn", "meta_keywords": "wendell,s,donut,shoppe,investigating,purchase,new,$18,600,donutmaking,machine,permit,company", "question_title_h1": "Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donutmaking machine. The new machine would permit the company to reduce the amount of", "question_title": "Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donutmaking", "question_title_for_js_snippet": "Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donutmaking machine The new machine would permit the company to reduce the amount of parttime help needed, at a cost savings of $3,800 per year In addition, the new machine would allow the company to produce one new ster of donut, resulting in the sale of 1,000 dozen more donuts each year The company realizes a contribution margin of $1 20 per dozen donuts sold The new machine would have a sixyear useful life l Slick here to view Exhibit 781 and Exhibit 782, to determine the appropriate discount factoris using tables Required 1 What would be the total annual cash inflows associated with the new machine for capital budgeting purposes Round your nal answer to the nearest Iwhole dollar amount ) 2 What discount factor should be used to compute the new machine's internal rate of return (Round your answers to 3 decimal places 3 What is the new machine's internal rate of return (Round your nal answer to the nearest whole percentage 4 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 nd the discount rate that will cause the net present value to be closest to zero ) (Round your nal answer to the nearest whole percentage Annual cash inows $ 5 000 t n Internal rate of return ", "question_description": "
\"image<\/div><\/div><\/div><\/figure> Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donutmaking machine. The new machine would permit the company to reduce the amount of parttime help needed, at a cost savings of $3,800 per year. In addition, the new machine would allow the company to produce one new ster of donut, resulting in the sale of 1,000 dozen more donuts each year. The company realizes a contribution margin of $1.20 per dozen donuts sold. The new machine would have a sixyear useful life. l[Slick here to view Exhibit 781 and Exhibit 782, to determine the appropriate discount factoris} using tables. Required: 1. What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? [Round your nal answer to the nearest Iwhole dollar amount.) 2. What discount factor should be used to compute the new machine's internal rate of return? (Round your answers to 3 decimal places} 3. What is the new machine's internal rate of return? (Round your nal answer to the nearest whole percentage} 4. 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; nd the discount rate that will cause the net present value to be closest to zero.) (Round your nal answer to the nearest whole percentage} Annual cash inows $ 5.000 t n Internal rate of return - %", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "B0991GDTCB", "uri": "\/textbooks\/farm-management-record-keeping-book-1st-edition-9798532630291", "name": "Farm Management Record Keeping Book", "edition": "1st Edition" }, "question_posted": "2024-06-29 02:44:08", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/long-straight-solenoid-of-cross-sectional-diameter-d-5", "description": "A long straight solenoid of cross-sectional diameter d = 5 cm and with n = 20 turns per one cm of its length has a round turn of copper wire of cross-sectional area S = 1.0 mm2 tightly put on its...", "stars": 3 }, { "url": "\/study-help\/psychology\/list-the-characteristics-of-wellset-goals-1982705", "description": "List the characteristics of wellset goals.", "stars": 3 }, { "url": "\/a-fouryear-financial-project-has-net-cash-flows-of-20000", "description": "A four-year financial project has net cash flows of $20,000; $25,000; $30,000; and $50,000 in the next four years. 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