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 $1.20 per dozen donuts sold. The new machine would have a six-year useful life. Click here to view Exhibit 13B-1 and Exhibit 138-2. to determine the appropriate discount factors) using tables Required: 1. What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? (Round your final answer to the nearest whole 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 answer to whole decimal place i.e. 0.123 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 sik years. Under 4. In addition to the data given previously, assume that these conditions, what is the internal rate of return? (Hint: You may find it helpful to use the net present value appr discount rate that will cause the net present value to be closest to zero.) (Round your answer to whole decimal place i.e. be considered as 12%.) 0.123 should 1. Annual cash inflows 2. Discount factor 3. Internal rate of return 4. Internal rate of return Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0943 0.935 0926 0917 0.909 0.901 0893 0.885 0.877 0870 0862 0.855 0.847 0 840 0833 0826 0820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0 857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0694 0.683 0672 0.661 0.650 0640 3 0.889 0.864 0.840 0816 0.794 0.772 0751 0731 0.712 0.693 0675 0.658 0.641 0.624 0.609 0.593 0.579 0564 0.551 0.537 0.524 0.512 4 0855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0572 0.552 0.534 0516 0.499 0.482 0.467 0451 0.437 0423 0.410 5 0822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0476 0.456 0437 0419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.5 96 0.564 0.535 0.507 0480 0.456 0.432 0.4 10 0.390 0370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0482 0.452 0425 0.400 0.376 0.354 0.333 0.314 0.296 0279 0.263 0.249 0235 0.222 0210 8 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0249 0233 0218 0204 0.191 0.179 0168 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.558 0.508 0463 0422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 650 0.585 0527 0475 0.429 0.388 0.350 0.317 0287 0.261 0.237 o.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0094 0 12 0625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0231 0.208 0.187 0.168 o.152 0.137 0.124 0.112 0.102 0092 0083 0.076 0.069 13 0.601 0.530 0.469 0415 0.368 0.326 0.290 0.258 0.229 0204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0084 0.075 0.068 0.061 0 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0 141 0.125 0.111 0099 0088 0.078 0069 0.062 0.055 0.049 0.044 15 0.555 0.481 0417 0.362 0.315 0.275 0.239 0209 0.183 0.160 0.140 0.123 0108 0.095 0084 0.074 0065 0057 0.051 0045 0.040 0035 16 0534 0.458 0.394 0.339 0.292 0.252 0.218 0188 0.163 0.141 0.123 0.107 0.093 0081 0.071 0062 0.054 0.047 0042 0036 0.032 0.0 17 0.513 0436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0069 0060 0.052 0.045 0.039 0.034 0.030 0.026 0023 18 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0153 0130 0.111 009s 081 0069 0.059 0.051 0044 0038 0032 0.028 0.024 0.021 0.01 1 0.475 0.396 0.331 0.277 0232 0.194 0.164 0.138 0.116 0098 0083 0.070 0060 0.051 0043 0037 0031 0027 0023 0.020 0.017 0014 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0124 0104 0087 0.073 0061 0051 0043 0037 0031 0.026 0022 0019 0016 0014 0012 0.359 0.294 0242 0.199 0.164 0.135 0.112 0093 0077 0064 0053 0.044 0037 0031 o.026 0022 0.018 0.015 0.013 0.011 0.009 278 0.226 0.184 0.150 0.123 0101 0083 0.068 0056 0.046 0.038 0.032 0026 0.022 0.018 0015 0013 0.011 0.009 0.007 0.211 0.170 0.138 0.112 0091 0074 0060 0049 0040 0033 0027 0022 0018 0015 0012 0010 0009 0,007 0.006 21 0.439 0.422 0.342 0.2 23 0.406 0.326 0.262 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0082 0066 0053 0043 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0074 0059 004 0.035 0.028 0023 0019 0015 0013 0010 0008 0.007 0.006 0.005 7 0038 o030 0024 0020 0016 0.013 0010 0.009 0.007 0.006 0.005 0.004 0053 0042 0033 0026 0021 0017 0014 0011 0.009 0007 0006 0005 0.004 0066 0.161 0.125 0098 0076 0060 0047 0037 0029 0023 0018 0014 0011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.150 0.116 0090 0.069 0054 0042 0033 0026 0.020 0.016 0012 0010 0.008 0006 0.005 0.004 0003 0002 0002 0.084 0220 0.172 0.135 0.106 0.361 0.281 27 0.347 0.268 0.207 28 0.333 0255 0.196 29 0.321 0.243 0.185 0.141 0.107 0082 0063 0048 0037 0029 0022 0017 0014 0011 0008 0.006 0.005 0.004 0.003 0.002 15 0012 0.009 o.007 0005 0.004 0003 0.003 0.002 0.002 0.001 0.308 0.231 0.174 0.131 0.099 0.075 0057 0044 0033 0.026 0020 0.0 0000 o 0001 0001 0001 0000 0,000 0000 0002 0097 0067 0046 0032 0022 0015 0011 0008 0005 0004 0.003 40 0.208 0.142 1 3 periods4% 5% 6% 7% 8% 9% 10% 1 s 13% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0962 0952 0943 0935 0.926 0.917 0.909 0.901 0893 0885 0.877 0.870 0862 0.855 0.847 0840 0.833 0.826 0.820 0.813 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1566 1.547 1.528 1.509 1492 1.474 1.457 1.4d0 3 2.775 2723 2.673 2624 2.577 2531 2487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 4 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3037 2.974 2914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2494 2.448 2.404 2.362 5 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3433 3.352 3 274 3.199 3.127 3.058 2991 2926 2.864 2.803 2.745 2.689 6 5.242 5076 4.917 4.767 4.623 4.486 4.355 4.231 4,111 3998 3.889 3.784 3.685 3.589 3.498 3410 3326 3245 3.167 3.092 3.020 2.951 76.002 5.786 5582 5.389 5.206 5.033 4 868 4.712 4564 4423 4.288 4.160 4.039 3.922 3.812 3706 3605 3.508 3.416 3.327 3.242 3.161 8 6.733 6.463 6210 5971 5747 5535 0335 5.146 4.968 4.799 4.639 4487 4.344 4.207 4.078 3.954 3837 3.726 3619 3.518 3.421 3.329 9 7.435 7.108 6.802 6.515 6247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4031 3.905 3.786 3.673 3.566 3.463 10 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5426 5.216 5019 4.833 4659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3571 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 986 9.394 8853 8.358 7.904 7.487 7.103 6.750 6.424 6 122 5842 5583 5.342 5.118 4.910 4715 4533 4.362 4.203 4.053 3912 12 9.385 8863 8.384 7943 7536 7.161 6.814 6.492 6.194 5918 5660 5.421 5.197 4.988 4.793 4611 4.439 4.278 4.127 3.985 3.851 3725 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6982 6628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4611 4432 4.265 4.108 3.962 3.824 15 11.118 10.380 9712 9.108 8.559 8061 7606 7.191 6811 6462 6142 5847 5575 5.324 5092 4876 4.675 4489 4315 4.153 4001 3.859 16 11.652 10.838 10.106 9.447 881 8.313 7.824 7.379 6974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.0 17 12.166 11.274 10477 9.763 9.122 8.544 8.022 7 .549 7,120 6.729 6.373 6047 5749 5475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3910 12.659 11.690 10.828 10.059 9.372 8756 8.201 7.702 7.250 6840 6467 6.128 5818 5534 5.273 5033 4.812 4608 4419 4243 4.080 3928 9604 8.950 8.365 7.839 7.366 6938 6.550 6.198 5.877 5584 5.316 5.070 4.843 4.635 4442 4263 4097 3.942 34 12.085 11.158 10.336 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 2 7.102 6687 6312 5973 5.665 5.384 5.127 4891 4675 4.476 4.292 4.121 3963 20 13.590 12.462 11.470 10.594 9.818 9.129 8514 7.963 7469 7.025 6.623 6259 5929 5.628 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8075 756 22 14.4 23 14.857 13.489 12.303 11.272 10.371 9580 8.883 8266 7718 24 15.247 13.799 12.550 11.469 10.529 9.707 8.9 25 15.622 14.094 12.783 11.654 10675 9.823 9.077 8422 7.843 7.330 909 4.690 4.488 4.302 4.1 451 13.163 12042 11.061 10.201 9.442 8.772 8176 7.645 7.170 6743 6.359 6011 5.696 5.410 5.149 4 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4499 4.311 4137 3976 5 8.348 7.784 7.283 6.835 6434 6.073 5.7465.451 5.182 4.937 4713 4.507 4.318 4.143 398 6.873 6.464 6.097 5.766 5.467 5.195 4948 4721 4.514 4.323 4.147 3985 6491 6.118 5.783 5.480 5.206 4.956 4.728 4520 4.328 4.151 3988 6514 6.136 5.798 5.492 5.215 4964 4.734 4.524 4.332 4.154 3990 10 5.502 5223 4.970 4.739 4528 4335 4.157 3992 9,161 8.488 7.896 7.372 6.906 6.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6935 26 15.983 14.375 13.003 11.826 10.810 9.929 28 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6961 6.534 6.152 5.8 29 16.984 30 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8694 8.055 7.496 7.003 6.566 6.177 5.829 5517 5.235 4979 4746 4534 4 98 9.370 8.650 8022 7.470 6983 6.551 6.166 5820 5510 5.229 4.975 4743 4531 4.337 4.159 3.994 5.141 13.591 12278 11.158 10.19 13.332 11.925 10.757 9779 8.951 8244 7.634 7.105 6642 6.233 5871 5548 5.258 4.997 4760 4544 4347 4166 3999 40 19.793 17.159 15.046