$2$

Kunkel Company is considering the purchase of a $$33,000$ machine that would reduce operating costs by $$8\mathrm{.}500$ per year. At the end of the machine's five$-$year useful life, it will have zero salvage value. The company's required rate of return is $16\%.$

$4$ points

eBook

Hirt

Complete this question by entering your answers in the tabs below.

Reterences

What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine?

Note: Any cash outflows should be indicated by a minus sign.

Total difference in undiscounted cash inflows and outflows