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please help me with this The management of Kunkel Company is considering the purchase of a $33,000 machine that would reduce operating costs by $8,500
please help me with this
The management of Kunkel Company is considering the purchase of a $33,000 machine that would reduce operating costs by $8,500 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 16%. Click here to vlew Exhibit 148-1 and Exhibit 14B-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 llfe of the machine? Complete this question by entering your answers in the tabs below. Determine the net present value of the investment in the machine. (Neoative ahrounts should be indicated by a minus bign. Round your final antwer to the nearest whole dollar amount. Use the aparopiate table to determine the discount foctor(5).) Complete this question by entering your answers in the tabs below. What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? GAny cash outflows should be indicated by a minus sign.) = r11(1+r)51 Step by Step Solution
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