The management of Kunkei Company is considering the purchase of a $38,000 machine that would reduce operating costs by $8,500 per year. At the end of the machine's five-yoeor useful Ife, it will have zero scrap value. The company's required rato of return is 13%. Required 1. Determine the net present value of the investment in the machine. (Any cash outflows should be Indicated by a minus sign. Use Microsoft Excel to calculate present valuos. Do not round Intormediate calculations.) Future Cash Item ived Per Year Annual Cash Inflows / Reduced Costs Net Present Value Calculation Present Value of Cash Inflows Less Cost of Machine Net present value 2. What is the difference between the total, undiscounted cash infows and cash outflows over the entre ife of the machine? (Any cash outflows should be indicated by a minus sign.) Total Cash Flows Cash Flow Years Itern Annual cost savings Initial investment Net cash flow