Wendell's Donut Shoppe is investigating the purchase of a new $47,300 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $6,300 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,600 dozen more donuts each year. The company realizes a contribution margin of $1.50 per dozen donuts sold. The new machine would have a six-year useful life. Click here to view Exhibit 148-1 and Exhibit 148-2. 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? 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 final answer to the nearest whole percentage.) 4. In addition to the data given previously, assume that the machine will have a $13,605 selvage 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.) (Round your final answer to the nearest whole percentage.) 1. Annual cash inflows 2 Discount factor 3. Internal role of rolum 4. Intomal rate of rolum EXHIBIT 143-1 Pret Value 11() 9661 %%7 9691 95 946 DECO 1910 Period 44 69 79 104 1194 129 1396 14 154 179 199 20% 2198 229 23% 249 259 1 0962095209110935 096 0917.90909010893 050 877 0.70 0.8620353 084 OS40083308260820030308060300 09090708900873035708420826020797 00 769 0256 0700731 0,75 0.706 094068 06720661 065020640 O10964 OSO ON16 0.794 072075107310.712069067506380611062406090 593057965640551 052 05240312 033350120.7920763 OISO10006330 65906360615059205220320 3360316 0.499 04670462 04510437 0430410 007940142013106106500621 0 5930567053051904497044760456 03104190402 0356 037003550 3410328 6 0979007660705 0666076005963056403350 5070 48004560432 03100 3900 3700132 0.1350319 0.303 10289102750 262 076007110665 061053057051304020452042 040003760300314029602790 2630249 023500210 0223106R062052054003020,46704104090610351 0.1270 1050 2330 266 02190233 02110 2000 1910.179 0165 9 0700064505920380 0.500060012403910361 033309030230261 0202020901940 180 013501440 14 10 067606110550000000 4220316035203226.195 02700247 022 0208 0.191 0176016201490132 0.1260 116 0 107 11 0.6505052705040350081202870361 021702150 1950 1780 1620 148015019301120103 0.09 0086 12 06203370 06440391 0356031902029702310205 0 1670 1680 152017 0124 01120 1020.092 OOR 00760069 060105300004150 16000 2900258022902000 120 163 01850 1300 1160 1010 091084007500600610035 14 0420OM100 2990021262053 OTTO 16000 11200099 00 00 00 00620055 00190044 13 05032031530227502020900 1000 1001001000959007000050057005100000100015 051400401902920 352016 01110101 0110101070 TOONT 00620000000000360000 051 OYO 000231 0 190 0166611301000910000000000000000039000000000 18 94940416010000020100 15001001110001000059001001001 0000000021001 19 105 106 10100010016401300 116000 00000000000000000000000000170014 300101010 01010070020000000 DO DONO 0260022 KODUODOS 0900290000000000000000000000000000000000000 2000 WOOOO000000000000000000000000000 000 0001010111000000006006190000000000000016900010 0.00 0.000000 31 Ova OD 010136010000000000000000000000000000 000000000 020202020 OOO OOO OO 00000000000000000000000000000000 01100101010 OO 0000000002 0000000000000000000000 03130235 000 000 0009005000000000000169000101000000000 00 DOLOMON ID 00000000000000 19 0000 000002 VO 0000000000000000500120000000000000000000000000001 . 020000000016900920102005000000000000000001000000000-00000000 91 11 000000 2000 MO DO 100 100 2002 OO O4199 DODO TODA01 ISO 1000 TOOD 10000000000000000 KAO DODAO OD 100 KORODEO TO KIROLITO 966 % % 1 6 11 HIBIT 1482 sest Value of an Annuity of Sin Arrears, 1:111(1+1) eriods 496 596 69 5% 10% 11% 129 13% 14% 159 16% 17% 18% 1992094 21% 229 2396 2496 2594 09620.9320943 0915 0.9260910.9090901 0.893 0885089710870 0.8620835 OBAZA 08100833082608200.8130 8060 800 2 15861859 1833 1808 17831 25917617131690 1663 164 16261605158515661547152815091492 1.474145714440 3 2775 2720267262425721 248 249 2402236123222282246 2210 2174 2140 2106 20742012 2011 1981 1952 4 360354634653387 33122240.1701310230372974291328552198 273 2.690692589 230 2499 2.44821042362 5 145243294212410039933890 3.791 3.696 3.605 3517 34333523273.1993.127 3.082991 2926 2564 2803237052689 5 524230764917 4.767 46234486435542311411399336893.784 3685935893.4983,4103326 32453167309230202951 7 6.0025.786 3.562538952065033 456837126564142332880.16040391 392 3812 37063.605 2.305 34163327 322 3.161 8 6733 6.463 6.210397152747333553353.146 4.9684.7994639948743404.207 4.07839543.8371 2.7263619 351834201329 7455108680265156247599552595537 5328513249469772460794514303416340313.905 3.7863367333.566 2.463 10 811127227360170246 710 6.418 614558895650542652165019 4833 4659 449443394192 405759253799368233371 8.7608330678377499 2.13963056.4956 207593836871345351234562948364656 4486 432741770353902 37763656 12 9.35 886313847947253671616.814 64926.1915.915 5660 54215197 988 47934611439427814127899853851725 13 9.986931948.85318-358 7.9017487 710367506424612258423.58333423113491047154.5334362 403 4053 39123.750 14 10.5639899929587458244775673676.982 6.62863026.002724346852293.0084 8024611142626541043.962324 15 11.116.10 380971299.100 8.559806176067 1916.8116.46261428.847 3.57533243 092576667544893154153400159 16 11652 10 10.1069442885133137.8247379 070 6600626539543660405162 4931 473043364357 1 41894032.23.887 12166 112701047792632.12235408027549720629 6373 60475700347522990545763914219140591910 18 12659 11 690 10.828 10.05993728.756802017202725068406 467 612855185953452735033481246054419424340503.928 19 1313412085111581033019600195083659253917366693065506.1983238455163070431346355424340971942 20 135901246211670 10.5949159129 8.514 17.963 2069202526.6236259.5.92956253531010370 67660322210930 1402912821117110.336100119292 8.61980751756210216667631259735665538451274891 22 16.451 13.16120121106 10 2019.4427725176764521106.71363596011369341051094.909 46904488 4675 4766292 2.963 23 1457134912230311272 103710580688266771817270679263996010220544323 167 4925 4.30241303970 24 4703 1522 1.22992230 109 105290708985R387734725068574346073374634513192502001991 4499 431 4976 25 15622 14.098 12270011654 107625982390771427843123068736464609757665465-195721431441079853 26 15.9216000111126 10.3109.9191916 BAB 28962760066491373410206295647265202 27 16301411119 10,935 11002792113457017409693516514613613795971321530990 41511988 28 1066.1981X606121701051 10.116193011602229847416961630615223111055020901 239 19 116980114113.359 121271115810.1989110865010222176706,983631616612035101322294925 30 1: 22DM2402 123 10 3694055 20/002656660925 19 1600 0651 1994 10 19,797171395046 02195 102/9913240105662625540333549975016690 1 ! 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