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N Exercise 13-2 Net Present Value Analysis (LO13-2] 12.5 points The management of Kunkel Company is considering the purchase of a $21,000 machine that would

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N Exercise 13-2 Net Present Value Analysis (LO13-2] 12.5 points The management of Kunkel Company is considering the purchase of a $21,000 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%. 8 04:54:59 Click here to view Exhibit 13B-1 and Exhibit 13B-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? eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Print 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).) References Net present value Required 1 Required 2 > 2 Exercise 13-2 Net Present Value Analysis (LO13-2) 12.5 points The management of Kunkel Company is considering the purchase of a $21,000 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%. X 04:54:42 Click here to view Exhibit 13B-1 and Exhibit 13B-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? eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Print 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.) References Total difference in undiscounted cash inflows and outflows

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