Please explain and show calculations. Thank you.

The management of Kunkel Company is considering the purchase of a $39,000 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 11%. Click here to view Exhibit 138-1 and Exhibit 138-2, 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? EXHIBIT 138-1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0943 0.935 0.926 0.917 0.909 0901 0.893 0.885 o0.877 0.870 0.862 0.855 0.847 0840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.8 12 0.797 0.783 0.769 0.756 0.743 0.731 0.7 18 0706 0.694 0683 0.672 O 661 .650 0540 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0641 0624 0609 o593 o579 0564 0.551 0.537 0.524 0.512 4 0855 0.823 0.792 0.763 0735 0.708 O 683 O 659 0.636 0613 O592 O572 OS52 0.534 0516 0499 0482 0467 O451 0437 0423 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0567 0543 0.5 19 0497 0476 0456 0437 0419 0402 0386 0370 0355 0.341 O329 0.790 0.746 0.705 0666 0.630 0.596 0.564 0535 0.507 0.480 0.456 0432 0410 0.390 0.370 0.352 0.335 0319 0.303 0289 0.275 0.262 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 o.376 0.354 o.333 0.314 0.296 0.279 0263 0249 0.235 0.222 0.210 0.7 3 1 0677 0.627 0.582 0.540 0502 0.467 O 434 O.404 0376 0.351 0327 0.305 0285 0266 0.249 0233 0218 0204 0191 OT79 0.15 0.703 O 645 O 592 0544 0.500 0 460 0.424 0 391 0.361 0333 O308 0284 0.263 0243 O225 0209 O194 0180 0.157 0.155 .144 .se 10 0.676 0614 0.558 0508 0.463 0.422 0.386 0352 0.322 0295 0.270 0247 0.227 0.208 0. 191 0176 0.162 0.149 0.137 0.126 0.116 0.107 8 0.650 0.585 0.527 0.475 0429 0388 0350 0317 0.287 0.26 1 O237 215 O 195 0. 178 o.162 0.148 0.135 O. 123 0.112 0.103 0094 0086 0.625 0.557 0497 0444 0397 0.356 0.319 0286 0257 0.231 0.208 0.187 0 168 0.152 O. 137 O 124 O 112 O. 102 OO92 OO83 OO76 0069 0601 0.530 0.469 0.4 1 5 0.368 0.326 0.290 0258 0.229 0,204 O.182 O. 163 O 145 . 130 0.116 O.104 .093 0084 0075 0068 0061 0055 0.577 0.505 0442 O 388 0.340 0.299 0263 O232 0205 0181 tso u14, 125 o,n, ao99 oc88 0078 ooss a04. 0.555 0.481 0.417 o.362 0.3 15 0275 0239 .209 0. 183 0.160 O 140 0 123 0108 0095 0084 0074 0065 oos, oost O045 0040 003s 11 12 13 14 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0141 0.123 0.107 0093 0081 0071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 17 0.513 0.436 0.371 0.317 o.270 0.231 0.198 0.170 0.146 0.125 0.108 0093 000 0.069 o.060 0.052 0.045 0039 0.034 0.030 0.026 0.023 18 0494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0 111 0095 0.081 0069 0059 o os1 0.044 0.038 0.032 0.028 o024 0.021 0.018 94 0.164 0.138 0.116 0098 0083 0070 0060 0051 0043 0.037 0031 o.027 0.023 0.020 0017 0.014 19 0.475 0.396 0.331 0.277 0.232 0.1 20 0.456 0.377 0312 0258 0 215 O 178 0.149 O 124 0.104 0087 0073 0061 G 051 0.043 0.037 0.031 0.026 0022 0019 0.016 0.014 21 23 0.406 0.326 0.262 0.211 0.170 0.138 0. 112 0.091 0012 0.439 359 0294 O 242 O 199 O 164 0135 0 1 12 0093 .077 0064 OOS3 0044 0037 0.031 0.026 0022 0.018 0.015 0013 0011 0.009 22 0.422 0.342 0.278 0226 0.184 0.150 0.123 0.101 0.083 0.068 0056 0046 0038 0032 0026 0.022 0.018 0015 0013 0.011 0.009 0.007 0.211 0.170 0.138 0.112 0.091 0074 0.060 0049 0040 0033 0027 0022 0018 0015 o.012 0010 0009 0.007 0.006 24 0.390 0.310 0247 0.197 0.158 0.126 0.102 0082 0066 0053 0043 0035 0028 0.023 0019 0015 0013 0010 0.008 0.007 0.006 oo0s 25 0.375 0.295 0.233 0.184 0.146 0 116 0.092 0074 0059 0047 0.038 0030 0024 0.020 0016 0013 0010 0009 0 007 0006 0.005 0004 26 0.361 0.281 0.220 0.172 0.135 0.106 0084 0.066 0053 0042 0033 0026 0.021 0.017 0014 0011 0.009 0.007 0006 0005 0.004 0.003 27 0.347 0.268 o 207 0.161 o.125 0098 0.076 0060 0.047 o037 0.029 0023 0018 0014 0011 0009 0.007 0.006 0.005 0004 0003 o.002 3 0.255 0.196 0.150 0.116 0090 0.069 0054 0.042 0033 0026 0020 0016 0012 0010 0.008 0006 0,005 0004 0003 0,002 0.002 29 0.321 0.243 0.185 0.141 0.107 0 082 0.063 0048 0.037 0029 0022 0017 0014 0011 0008 0.006 0.005 0.004 0003 0.002 0.002 o.002 30 0.308 0.231 0.174 0.131 0.099 0.075 0057 0.044 0.033 0.026 0020 0015 0012 0009 0007 0.005 0.004 0.003 0003 0.002 0002 0.001 40 0.208 0.142 0097 0.067 o046 0.032 0022 0015 0.011 o 008 0005 0.004 0003 0.002 0001 0.001 0.001 0.00o 0000 0.000 0000 0.000 EXHIBIT 13B-2 Present Value of an Annuity of $1 in Arrears;1-0+ Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0943 0935 0926 0.917 0909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0847 0840 0.833 0826 0.820 0.813 0.806 0800 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 3 2.775 2.723 2673 2.624 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 2074 2042 2011 1.981 1.952 3.630 3.546 3465 3.387 3312 3.240 3.170 3,102 3037 2974 2914 2855 2798 2.743 2.690 2639 2589 2.540 2 494 2.448 2404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 6 5242 5.076 4917 4.767 4623 4.486 4.355 4.231 4.111 3.998 3.889 3784 3685 3.589 3498 3.410 3.326 3.245 3 167 3.092 3.020 2951 7 6002 5.786 5.582 5.389 5.206 5.033 4868 4712 4564 4.423 4.288 4.160 4039 3.922 3812 3706 3.605 3.508 3416 3.327 3242 3.161 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3837 3.726 3619 3.518 3421 3.329 9 7.435 7.108 6.802 6.515 6 247 5.995 5.759 5.537 5328 5132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 10 8.111 7.722 7.360 7024 6.710 6.418 6.145 5889 5.650 5.426 5216 5019 4.833 4.659 4.494 4.339 4.192 4054 3923 3.799 3.682 3.571 11 8.760 8.306 7887 7.499 7.139 6805 6495 6.207 5.938 5687 5.453 5 234 5.029 4.836 4.656 4.486 4.327 4.177 4 035 3.902 3.776 3.656 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5918 5.660 s 421 5.197 4.988 4.793 4.611 4.439 4.278 4,127 3.985 3851 3.725 13 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5842 5583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 14 10.563 9.899 9.295 8.745 8 244 7.786 7.367 6.982 6.628 6.302 6.002 5724 5468 5.229 5008 4.802 4611 4.432 4.265 4.108 3.962 3824 15 11.118 10.380 9.7 12 9 108 8559 8061 7.606 7.191 6811 6462 6.142 5847 5.575 5.324 5 092 4876 4.675 4489 4 315 4.153 4 001 3859 16 11.652 10.838 10.106 9.447 8851 8.313 7824 7.379 6.974 6604 6.265 5954 5.668 5.405 5.162 4938 4.730 4.536 4.357 4.189 4.033 3.887 17 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 5475 5.222 4.990 4.775 4576 4.391 4.219 4.059 3.910 18 12659 11.690 10828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5534 5 273 5033 4 812 4 608 4.419 4.243 4.080 3.928 19 13.134 12.085 11.158 10.336 9 604 8.950 8.365 7839 7.366 6.938 6.550 6.198 5.877 5584 5316 5.070 4.843 4.635 4.442 4.263 4097 3942 20 13.590 12.462 11470 10 594 9.818 9129 8514 7963 7.469 7025 6623 6.259 5.929 5.628 5.353 5.101 4870 4.657 4460 4.279 4.110 3954 21 14.029 12.821 11.764 10.836 10017 9.292 8.649 8075 7.562 7.102 6687 6.312 5.973 5665 5.384 5.127 4.891 4675 4.476 4.292 4.121 3.963 22 14.451 13.163 12042 11.061 10.201 9.442 8772 8.176 7.645 7.170 6743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3970 23 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 718 7.230 6792 6.39 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3976 24 15.247 13 799 12 sso 11.469 10 529 9.707 8985 8348 7784 7.283 6835 646073 5746 5451 5182 4937 4713 4s07 4.318 4.143 3981 25 15.622 14094 12.783 11.654 10 675 9.823 9077 8.422 7843 7330 6.873 6.464 6.097 5.765 5467 5.195 4948 4721 4.514 4.323 4. 147 3.985 26 15.983 14.375 13003 11.826 10810 9.929 9.161 8.488 7.896 7.372 6906 6491 6 118 5783 5480 5.206 4956 4728 4520 4.328 4.151 3988 27 16330 14.643 13.211 11.987 10935 10027 9.237 8548 7.943 7.409 6935 6514 6.136 5.798 5492 5.215 4.964 4.734 4524 4.332 4.154 3.990 28 16.663 14.898 13.406 12 137 11.051 10 116 9.307 8602 7984 7.441 6961 6534 6.152 5.810 5 502 5.223 4970 4.739 4.528 4.33s 4.157 3.992 29 16.984 15.141 13 591 12.278 11.158 10.198 9.370 8650 8.022 7.470 6.983 6551 6.166 5.820 5.510 5.229 4975 4.743 4531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11 258 10.274 9.427 8694 8055 7.496 7.003 6566 6.177 5829 S 517 5.235 4.979 4,746 4.534 4.339 4.160 a995 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8951 8.244 7634 7 105 6642 6.233 5871 5.548 5.258 4997 4.760 4544 4.347 4.166 3.999