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 - %