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CH 5 Exercise 14-2 (Algo) Net Present Value Analysis (LO14-2) The management of Kunkel Company is considering the purchase of a $44,000 machine that would

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CH 5 Exercise 14-2 (Algo) Net Present Value Analysis (LO14-2) The management of Kunkel Company is considering the purchase of a $44,000 machine that would reduce operating costs by $10,000 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 11% Click here to view Exhibit 148-1 and Exhibit 148-2. 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 prosent volo Required 2 > Ch 5 Exercise 14-2 (Algo) Net Present Value Analysis (LO14-2] The management of Kunkel Company is considering the purchase of a $44,000 machine that would reduce operating costs by $10,000 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's required rote of return is 11% Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factors) 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 What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? (Any cash outflows should be indicated by a minus sign.) Total difference in undiscounted onth inflows and outlow

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