Kunkel Company is considering the purchase of a $30,000 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 12%. Click here to view Exhibit 148-1 and Exhibit 148-2. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the net present value of the investment in the machine. Note: 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 1 Required 2 > EXHIBIT 148-1 Present Value of $1; 1 ((+1)) Periods 4% 3% 6% 7% 1 0.962 0.952 0.943 0.935 12% 13% 14% 0.877 2 0.925 3 0.889 4 0.855 S 0.822 6 7 0.760 0.71 0.665 8 0.731 0.467 9 0,703 0424 10 0.676 0614 11 12 0397 13 0.601 14 0577 15 0.555 16 17 18 19 20 0.456 0377 21 0.124 0.112 22 0.101 0.083 0.068 23 0091 0.074 9% 10% 11% 8% 20% 19% 21% 22% 23% 25% 24% 0.926 0.917 0.909 0.901 0.893 0.885 0.847 0.840 0.833 0.826 0.820 0.813 0806 0.800 0.907 0.890 0.873 0.857 0.842 0.826 0812 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 0.864 0.840 0.816 0.794 0.772 0.751 0.658 0.641 0.731 0.712 0.693 0.675 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0512 0.823 0.792 0.763 0.735 0.708 0683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0467 0.451 0.516 0.499 0.482 0437 0.423 0410 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0370 0.355 0.341 0.328 0.456 0437 0419 0.402 0.386 0303 0.666 0.630 0.790 0.746 0.705 0.596 0.564 0.352 0.335 0535 0.507 0.480 0.456 0432 0410 0.390 0.370 0289 0.275 0.262 0.623 0.583 0.547 0.513 0482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0210 0.677 0.627 0.582 0.540 0.502 0.434 0.404 0.376 0.218 0.204 0.191 0.179 0.168 0.351 0.327 0305 0.285 0.266 0.249 0.233 0.645 0.592 0.544 0.500 0.460 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.155 0.144 0.134 0.194 0.180 0.167 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 0.650 0.385 0527 0.475 0.429 0.388 0350 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 0.625 0.557 0497 0444 0.083 0.076 0.069 0.356 0.319 0.286 0.257 0.231 0.208 0.168 0.187 0.152 0.137 0.124 0.112 0.102 0.130 0530 0469 0415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.116 0.104 0.093 0.084 0.062 0505 0.442 0.388 0.340 0.299 0.099 0.263 0.232 0.205 0.181 0.160 0.141 0.088 0.078 0.069 0.275 0.065 0.481 0.417 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.362 0.315 0.084 0.074 0.057 0.051 0.062 0.054 0.047 0.071 0.042 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.394 0.534 0.458 0.093 0.081 0.339 0.292 0.093 0.060 0.080 0.052 0.045 0.069 0.039 0.034 0513 0436 0371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.026 0.023 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0494 0416 0.350 | 0.296 | 0.250 0.212 0.180 0.153 0.024 0.021 0.018 0.232 0.043 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0023 0.020 0.017 0.014 0.037 0.475 0.396 0.331 0.277 0.031 0.027 0.149 0.031 0.016 0.014 0.012 0.104 0.087 0.026 0.073 0.061 0.037 0.022 0.215 0.178 0.019 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.199 0.164 0.135 0.093 0.077 0.184 0.150 0.123 0.170 0.138 0.112 15% 16% 17% 18% 0.870 0.862 0.855 0.319 0.092 0.075 0.125 0.111 0.068 0.061 0.055 0.095 0.055 0.049 0.044 0.045 0.040 0.035 0.036 0.032 0.028 0.030 0.060 0.051 24 0.158 0.126 0.102 0.082 0.066 25 0.074 0.059 0.047 0.066 26 27 28 29 30 40 0208 0.008 0312 0.258 0.064 0.439 0.359 0.294 0.242 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0422 0342 0.278 0.226 0.027 0.018 0.060 0.049 0.040 | 0.033 0.015 0.022 0.007 0.012 0.010 0.009 0.006 0406 0.326 0.262 0.211 0.028 0.053 0.043 0.035 0.023 0.019 0.015 0.013 0.010 0.008 0.006 0.005 0.007 0.390 0.310 0.247 0.197 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.006 0.005 0.009 0.007 0.004 0375 0.295 0.233 0.184 0.146 0.116 0.092 0.011 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.009 0.007 0.006 0.005 0.004 0.003 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.037 0.029 0.023 0.018 0.007 0.002 0.014 0.011 0.009 0.005 0.000 0.006 0.047 0.004 0.003 0347 0.268 0207 0.161 0.125 0.098 0.076 0.033 0.010 0.016 0.026 0.020 0.008 0.006 0.005 0.004 0.002 0.002 0.003 0.090 0.333 0.255 0.196 0.150 0.069 0.054 0.042 0.116 0.011 0.022 0.017 0.014 0.005 0.063 0.048 0.037 0.029 0.004 0002 0.003 0.002 0.002 0.321 0.243 0.185 0.141 0.107 0.082 0.004 0.026 0.020 0015 0012 0.009 0.003 0.003 0.002 0.002 0.001 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.005 0.000 0.000 0.000 0.000 0.142 0.097 0.046 0.032 0.022 0.067 0.015 0.011 0.051 0.043 0.053 0.044 0.037 0.031 0.012 0.008 0.007 0.006 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears; ((1+r))" Periods 4% 5% 6% 7% 1 2 3 0.962 0.952 0.943 0.935 1.886 1.859 1.833 1.808 2.775 2.723 2.673 2.624 4 3.630 3.546 3.465 5 4.452 4.329 4.212 6 5.242 5.076 4.917 7 6.002 5.786 8 6.733 6463 9 7.435 7.108 6.802 10 8.111 7.722 7360 11 8.760 8.306 7.887 12 6.247 7.024 6.710 7.499 7.139 9.385 8.863 8.384 7.943 7.536 6.515 13 9.986 9.394 8853 8.358 7.904 14 10.563 9.899 9.295 8.745 8.244 15 11.118 10.380 9.712 9.108 8.559 7.487 7.786 8.061 16 11.652 10.838 10.106 9447 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 17% 18% 19% 20% 21% 22% 0.840 0.833 0.826 0.820 1528 1.509 1.492 23% 24% 25% 0.813 0.806 0.800 1.474 1457 1.440 8% 9% 10% 11% 12% 13% 14% 15% 16% 0.926 0917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0855 0.847 1.783 1.759 1.736 1,713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1981 1952 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 2.540 2.494 2.448 2.404 2.362 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 2991 2.926 2.864 2.803 2.745 2.689 4.767 4.623 4.486 4355 231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 5.995 5.759 5537 5.328 5.132 4.946 4.772 4.607 4451 4.303 4.163 4.031 3.905 3.786 3.673 3566 3.463 6418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 6.805 6495 6.207 5.938 5.687 5.453 5.234 5029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 7.161 6.814 6492 6.194 5.918 5,660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3985 3.851 3.225 7.103 6.750 6.424 6.122 5842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5008 4.802 4.611 4432 4.265 4.108 3.962 3.824 7.606 7.191 6.811 6462 6.142 5.847 5.575 5.324 5092 4.876 4.675 4489 4315 4.153 4.001 3859 8.851 8.313 7.824 7.379 6.974 6604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.387 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 4059 3.910 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5818 5534 5.273 5033 4.812 4.608 4419 4.243 4.080 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4442 4.263 4097 3942 13.590 12.462 11.470 10.594 9.818 9.129 8514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 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 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6011 5.696 5410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6073 5.746 5.451 5.182 4.937 4.713 4.507 4318 4,143 3.981 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6097 5.766 5.467 5.195 4.948 4.721 4514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4970 4.739 4528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7470 6.983 6.551 6.166 5.820 5510 5.229 4.975 4.743 4.531 4.337 4.159 3,994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4979 4.746 4.534 4.339 4.160 3.995 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 4.544 4.347 4.166 3.999 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the difference bween the total, undiscounted cash inflows and cash outflows over the entire life of the machine? Note: Any cash outflows should be indicated by a minus sign. Total difference in undiscounted cash inflows and outflows