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Check my work The management of Kunkel Company is considering the purchase of a $43,000 machine that would reduce operating costs by $9,000 per year.
Check my work The management of Kunkel Company is considering the purchase of a $43,000 machine that would reduce operating costs by $9,000 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 12%. 10 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. points Required: 00:23:57 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? Print 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 cash inflows and outflows 2 points i' 2 00:23 j \\, Print The management of Ballard MicroBrew is conSidering the purchase ofan automated bottling machine for $50000. The machine would replace an old piece of equipment that costs 5513.000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $20000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreCiation expense assoCiated with the new bottling machine? 2. What is the annual incremental net operating income prowded by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the slmple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) 1 DepreCiation expense 2 incremental net operating income 3 initial investment 4. Simple rate cl return Check my work
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