Question: Please answer 2-4 step by step. Thanks you ! Return to question 2 Wendell's Donut Shoppe is investigating the purchase of a new $18,.600 donut-making
Return to question 2 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 eddition, 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. 10 points Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factorls) using tables Required: 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 L.e. 0.123 should be considered as 12%.) 4. In addition to the data given previously, assume that the machine will have a $9,125 salvage value at the end of sb years. Under these conditions, what is the internal rate of return? (Round your answer to whole decimal place Le. Work 0.123 should be considered as 12%) Annual cash $5,00 1. inflows 2 Discount3,7003 3. 3. Internal rate of returr Internal rate of return olde 4
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