94 Check my work The management of Kunkel Company is considering the purchase of a $36.000 machine that would reduce operating costs by $8.500 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 13% Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. Required: 1. Determine the net present value of the investment in the machine. 2. What is the difference between the total undiscounted cash inflows and cash outflows over the entire life of the machine? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the net present value of the investment in the machine. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount. Use the appropriate table to determine the discount factor(s).) Net present value Required Required 2 > EXHIBIT 13B-1 Present Value of St. Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 235 245 25% 1 2 3 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 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 0.694 0.683 0.672 0.661 0.650 0.640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.515 0.499 0.482 0.467 0.451 0.437 0.423 0.410 0822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0 341 0.328 4 5 6 7 8 9 10 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0 333 0 314 0.296 0.279 0.253 0.249 0.235 0 222 0.210 0 731 0.677 0527 0.582 0.540 0.502 0.467 0.434 0 404 0376 0351 0327 0305 0.285 0 266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.703 0645 0 592 0 544 0.500 0.460 0424 0 391 0 361 0333 0.308 0284 0263 0243 0225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 16 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0286 0.257 0231 0.208 0.187 0168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0.530 0469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0075 0.068 0.061 0.055 0.577 0.505 0.442 0388 0.340 0209 0263 0232 0205 0.181 0.160 0.141 0.125 0.11 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 16 0.534 0.458 0.394 0.339 0.292 0.252 0218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 17 0.513 0.436 0.371 0.317 0.270 0231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0,052 0.045 0.039 0.034 0.030 0.026 0.023 18 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0095 0.001 0.060 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 19 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0,051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 20 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0022 0.019 0016 0.014 0.012 21 0.439 0.359 0.294 0 242 0.199 0.164 0.135 0.112 0.093 0077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 22 0.422 0.342 0278 0226 0.184 0.150 0.123 0 101 0.083 0068 0.056 0.046 0.038 0032 0.026 0.022 0.01 0.015 0.013 0011 0009 0.007 23 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0091 0.074 0 060 0.049 0.040 0.033 0027 0.022 0018 0.015 0012 0.010 0.00 0.00 0.006 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.002 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 25 0.375 0.295 0 233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 26 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 27 0347 0.260 0207 0.161 0.125 0.008 0.076 0.060 0.047 0037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0.106 0.150 0.116 0.000 0.069 0.054 0.042 0.033 0.026 0.020 0.016 0012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 290.321 0.243 0.185 0.141 0.107 0.002 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.025 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 13-2 Present Value of an Anruilty of $1 in Arrows |-- Periods 1 2 3 4 5 6 7 8 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1833 1.808 1.783 1759 1736 1.713 1690 1.668 1,647 1626 1605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2673 2.624 2.577 2.531 2.487 2.444 2.402 2361 2.322 2283 2246 2.210 2.174 2.140 2106 2.074 2.042 2011 1.981 1.952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2540 2.494 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2 864 2.803 2.745 2.689 5.2425.076 4.917 4.767 4.623 4.486 4.355.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3245 3.167 3.092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4564 4.423 4288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3242 3.161 6.733 6.463 6.210 5.971 5.7475.535 5 335 5.146 4 968 4799 4.639 4.487 4344 4207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5328 5.132 49464772 4607 4451 4303 4.163 4031 2.905 1786 3673 3566 3.463 8.111 7.722 7.360 7024 6.710 6.418 5.145 5.889 5650 5.426 5 216 5019 4833 4659 4.494 4.339 4.192 4054 3.923 3.799 3.682 3.571 12 13 14 8760 8 306 7.887 7499 7.139 6 805 6.495 6 207 5938 5687 5453 5 234 5029 4836 4.656 4.486 4327 4.1774035 3.902 3775 3.656 9.385 8.863 8.384 7.943 7.536 7.161 6,814 6.492 6.194 5 918 5.660 5.421 5.197 4988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 9.985 9.394 8.853 8.358 7.904 7.487 7103 6.750 6.424 6.122 5.842 5.582 5.342 5.118 4.910 4715 4.533 43624.203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7 367 6.982 6 628 6.302 6.002 5.224 5 468 5229 5 008 4.802 4611 4.432 4.265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8559 8061 7 606 7.191 6811 6 462 6.142 5.847 5 575 5 324 5.092 4.876 4,675 4.489 4.315 4.153 4 001 3859 15 16 11652 10 8 10 106 9447 8.851 8.313 7824 7379 6.9746.604 6.265 5 954 5.668 5.405 5.162 4 938 4730 4.535 4357 4.189 4.033 3.887 17 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4243 4.080 3.928 19 13 134 12 085 11.158 10 336 9.604 8.950 8.365 7839 7366 6938 6550 6.198 5877 5 5845 316 5070 4843 4635 4.442 4.263 4 097 3942 2012 590 12 462 11.470 10 594 9818 9.129 8 514 7.963 7469 7025 6623 6.259 5 929 5628 5353 5101 4.870 4657 4.460 4.279 4 110 3954 21 22 23 24 25 14029 12821 11.764 10836 10.017 9.292 8.649 3 075 7562 7.102 6,687 6312 5.973 5.665 5 384 5.127 4.891 4.675 4.476 4 292 4.121 3.963 14.451 13 163 12 042 11 061 10 201 9.4428 772 8 176 7645 7.170 6.743 5 359 6011 5 596 5410 5.149 4.909 4.690 4438 4302 4.130 3.970 14.857 13 489 12 303 11 272 10 371 9580 8883 8 266 7718 7230 6.792 6 399 6044 57235432 5. 167 4925 4.703 4.499 43114137 3976 15 247 13 799 12 550 11469 10529 9.707 8085 8348 7784 7283 6835 6.434 6073 5.746 5 451 5.182 4937 4.7134 507 4318 4.143 3981 15 622 14 094 12.783 11654 10 675 9.823 9077 8.422 7843 7.330 6.873 5,454 6.097 5.766 5.467 5.195 4.948 4.7214514 4.323 4147 3.995 27 28 15 983 14.375 13.003 11 826 10.810 9.929 9.161 8.4BB 7896 7 372 6.906 5.491 6.118 5.783 5.480 5.206 4.956 4.728 4520 4320 4.151 3.988 16 330 14.643 13.211 11.987 10.935 10.0279 237 8.548 7943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4 964 4734 4.524 4322 4.154 3.990 16.663 14. ROR 13.406 12.137 11051 10.116 9.307 8.602 7984 7.441 6.961 6.534 6.152 5.810 5 502 5223 4.970 4.719 452 4335 4.157 3992 16.984 15.141 13.591 12.278 11.158 10.1089 370 8650 80227.470 6.983 6551 6.166 5.820 5510 5229 4.975 4.243 4531 4337 4.159 1994 17.292 15 372 13.765 12.409 11.25 10.2740427 8.694 8055 7.496 7.003 5.566 6.177 5.829 5517 5235 4.979 4 746 4534 439 4 160 3995 29 30 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6 233 5.871 5.548 5.258 4.997 4.760 4544 4 347 4.166 3.999