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Exercise 12-2 (Algo) Net Present Value Analysis [LO12-2] The management of Kunkel Company is considering the purchase of a $27,000 machine that would reduce operating

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Exercise 12-2 (Algo) Net Present Value Analysis [LO12-2] The management of Kunkel Company is considering the purchase of a $27,000 machine that would reduce operating costs by $6,500 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 1281 and Exhibit128-2, to determine the appropriate discount factor(s) using table. Required: 1. Determine the net present value of the irvestment 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. Determine the net aresent value of the investment in the machin Q. (Negative atnounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount, Use the approperiate tabite to determine the discoint factor(s). )

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