Wendell's Donut Shoppe is investigating the purchase of an $$34,600$ donut$-$making machine with a six$-$year useful life. The new

machine would reduce labor costs by $$6,500$ per year. In addition, it would allow the company to produce one new style of donut,

resulting in the sale of $2,500$ dozen more donuts each year. The company realizes a contribution margin of $$1\mathrm{.}60$ per dozen donuts

sold.

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

What are the new machine's total annual cash inflows?

What discount factor should be used to compute the new machine's internal rate of return?

Note: Round your answer to $3$ decimal places.

What is the new machine's internal rate of return?

Note: Round your final answer to the nearest whole percentage.

In addition to the data given previously, assume the machine will have a $$13,755$ 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; find the discount

rate that will cause the net present value to be closest to zero.$)$

Note: Round your final answer to the nearest whole percentage.

Answer is not complete.