Wendell's Donut Shoppe is investigating the purchase of a new $40.000 donut making machine. The new machine woukd permit the. company to teduce the amount of part-time help necded, at a cost savirn of $5,200 pet year, In addition, the new machire would allow the company to produce one new style of donut, resulting in the sale of 2,000 dozen more donuts each year, fke company realizes a contribution margin of $2.40 per dozen donuts sold. The new machine would have a sioyear useful life, Click here to vicw Exhibit 12B-1 and Exhibit 12B2, to determine the appropriate discount factor(s) using lables Required: 1 What would be the totat annual cash infiows assoclated with the rew inachine for capital budgeting purposes? 2 What discount factor should be used to compute the new machine's internal rafe of return? (Round your answers te 3 decimal plocesi) 3. What is the new machine's internal rate of tetuin? (Round your finel answer to the nearest whole percentege.) 4. In addition to the data glven prevlously, assume that the machine will thave a $10. 515 salvage valut at the ernd of six years. Undes these condithoris, what is the internal rate of return? (Hint: You may find it helptul to use the net present value approach; find the discount rate that will cause the net present value to be closest to zeto.) (Round your final answer to the nearest whole pereentoge.) Wendell's Donut Shoppe is investigating the purchase of a new $40.000 donut making machine. The new machine woukd permit the. company to teduce the amount of part-time help necded, at a cost savirn of $5,200 pet year, In addition, the new machire would allow the company to produce one new style of donut, resulting in the sale of 2,000 dozen more donuts each year, fke company realizes a contribution margin of $2.40 per dozen donuts sold. The new machine would have a sioyear useful life, Click here to vicw Exhibit 12B-1 and Exhibit 12B2, to determine the appropriate discount factor(s) using lables Required: 1 What would be the totat annual cash infiows assoclated with the rew inachine for capital budgeting purposes? 2 What discount factor should be used to compute the new machine's internal rafe of return? (Round your answers te 3 decimal plocesi) 3. What is the new machine's internal rate of tetuin? (Round your finel answer to the nearest whole percentege.) 4. In addition to the data glven prevlously, assume that the machine will thave a $10. 515 salvage valut at the ernd of six years. Undes these condithoris, what is the internal rate of return? (Hint: You may find it helptul to use the net present value approach; find the discount rate that will cause the net present value to be closest to zeto.) (Round your final answer to the nearest whole pereentoge.)