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Wendell's Donut Shoppe is Investigating the purchase of a new $$34,600$ donut$-$making machine. The new machine would permit the company to reduce the amount of part$-$time help needed, at a cost savings of $$6,200$ per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of $2,200$ dozen more donuts each year. The company realizes a contribution margin of $$2\mathrm{.}00$ per dozen donuts sold. The new machine would have a six$-$year useful life.

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

Required:

What would be the total annual cash Inflows assoclated 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.$)$

What is the new machine's Internal rate of return? $($Round your final answer to the nearest whole percentage.$)$

In addition to the data given previously, assume that the machine will have a $$12,630$ 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.$)($Round your final answer to the nearest whole percentage.$)$

$\backslash$table$[[1.$ Annual cash inflows,$5,11,040,],[2.$ Discount factor,,,$],[3.$ Internal rate of return,,,$\%$

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