Kunkel Company is considering the purchase of a $$23,000$ machine that would reduce operating costs by $$5,000$ 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 $12\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Required:

$1$ Calculate 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?