The management of Kunkel Company is considering the purchase of a $20,000 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 13% Click here to view Exhibit 12B-1 and Exhibit 12B-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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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).) Net present value Required 1 Required 2 > 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) Total difference in undiscounted cash inflows and outflows < Required 1 Required 2> EXHIBIT 12B-1 Present Value of S1;- 1 (1+r)* Periods 4% 5% 1 2 9% 0.917 0842 10% 3 4 5 6 0.790 0.746 7 8 9 10 11 12 0.625 13 0.601 0.557 0.530 14 0.577 0.505 15 0.555 0.481 16 0.534 0.209 0.188 0.140 0163 0141 0123 17 0.513 0170 0.146 0.125 0108 18 0494 0416 0350 0153 0130 0.111 0.095 19 0475 0.396 0.331 0.194 0164 0138 0.116 0.098 0.053 20 0.456 0.377 0.312 0178 0149 0124 0.104 0.087 0.073 21 0.439 0359 0135 0112 0.095 0.077 22 0422 0.342 0.063 0068 23 0406 0.326 0262 0001 24 0.390 0.310 0247 0.197 0158 0126 0102 0082 0014 0066 0.053 0.060 6% 7% 8% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 2256 2396 24% 25% 0.962 0.952 0.943 0.935 0.926 0.909 0.901 0893 0885 0.877 0.870 0.862 0.855 0.847 0840 0.833 0.826 0.820 0.813 0.806 0.800 0925 0.907 0.890 0873 0857 0826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0694 0.683 0,672 0.661 0.650 0.640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0712 0693 0.675 0.658 0.641 0.624 0.609 | 0.593 0579 0.564 0.551 0.537 0.524 0312 0.855 0.823 0.792 0.763 0.735 0708 0683 0.659 0.636 0613 0.592 0572 0.552 0534 0316 0499 0.482 0467 0451 0437 0423 0410 0.822 0.784 0.747 0.713 0681 0650 0.621 0.593 0.567 0.543 0519 0.497 0.476 0.456 0.437 0419 0.402 0.386 0.370 0.355 0.341 0.328 0.705 0.666 0.630 0.596 0.564 0.335 0.507 0450 0.456 0432 0410 0.390 0.370 0352 0.335 0319 0.303 0289 0.275 0.262 0.760 0.711 0.665 0.623 0.583 0547 0.513 0482 0452 0425 0.400 0376 0354 0333 0.314 0.296 0279 0263 0.249 0.235 0.222 0.210 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0434 0404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0233 0.218 0.204 0.191 0703 0.645 0.592 0544 0.500 0,460 0424 0.391 0361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.676 0.614 0.558 0.508 0.463 0422 0.386 0.352 0322 0.205 | 0270 | 0.247 0.227 0208 0.191 0.176 0.162 0.149 0137 0.126 0.650 0.585 0.527 0475 0.429 0.385 0.350 0.317 0195 0.287 0261 0.237 0215 0.103 0.123 0.112 0178 0.162 0.145 0.135 0.092 0.497 0444 0.397 0208 0356 0319 0.286 0257 0.231 0187 0.168 0.152 0.137 0124 0112 0102 0.469 0326 0415 0.182 0290 0258 0.368 0.054 0229 0.204 0163 0145 0.075 0068 0.116 0104 0.388 0.340 0.442 0.299 0.263 0.232 0.205 0.18E 0.160 0.099 0.098 0.069 0.062 0.055 0.275 0.239 0.057 0417 0.362 0.315 0.051 0183 0.160 0394 0.458 0.119 0292 0252 0.218 0.436 0.270 0.317 0.371 0.231 0.198 0296 0250 0212 0.150 0277 0.212 0.215 0.258 0 294 0.242 0190 0.164 0278 0.226 0184 0150 0.123 0.101 0211 0112 0170 0138 0.179 0.165 0.144 0.134 0.116 0.107 6094 0.056 0.083 0.076 0059 0.141 8091 0.130 0.061 0.055 0.125 0.111 0.078 0049 0.04 0.123 0.108 0.095 0084 0.074 0.065 0045 0.040 0.035 0107 | 0093 0.081 0.071 0062 0.054 6047 0042 0.036 0012 0.028 0.093 0.080 0069 0060 0.052 0.045 0.039 0.034 0.010 0.026 0.023 008) 0069 0.059 000 00600051 0.051 0043 0337 0044 0038 0.031 0.032 0.028 0024 0.021 0.018 0061 0051 0043 0.037 0011 0.064 0053 0.044 0017 0011 0.026 0056 0046 0038 0.012 0.026 0.022 0.049 0040 0.033 0.027 0.022 0.018 0043 0.035 0028 0.023 0019 0015 0013 0.010 0.027 0026 0.022 0022 0.018 0.015 0013 0018 0.015 0.013 0015 0012 0010 0.008 0023 0020 0.017 0.014 0019 0016 0014 0.012 0.011 0.009 25 0.375 0.295 0233 0.184 0146 0.116 0092 0074 0059 0.047 0018 0030 0024 0020 0.009 0.016 0.013 0.010 26 0361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0053 0.042 0.033 0026 0021 0.017 0014 0.0110009 0.007 27 0.347 0268 0.207 0.161 28 0.333 0.255 0.196 0.150 0116 29 0.321 0.243 0.185 0.141 30 0.308 0.231 0.174 0.131 40 0.208 0.142 0.097 0.067 0.046 0.125 0.098 0.090 0107 0082 0.099 0.075 0032 0076 0.060 0.047 0017 0.029 0.023 0.015 0.014 0.011 0.009 0.007 0.006 0.009 0.011 0.007 0.006 0.009 0.007 0.006 0.005 0.007 0.006 0005 0.004 0.006 0.005 0.005 0.004 0.007 0.004 0.003 0003 0.002 0.069 0.054 0.063 0057 0.044 0.042 0053 0026 0.020 0016 0037 0045 0.029 0022 0.017 0.014 0.011 0.008 0033 0.026 0.020 0015 0.012 0009 0.007 0022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.006 0.012 0.010 0.008: 0.006 0.005 0.005) 0.004 0.001 0.005 0.004 0.003 0.002 0.002 0004 0.003 0.003 0.002 0.003 0.002 0.002 0.002 0.002 0.001 0.001 0.000 0000 0000 0.000 0.000 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; 1(1-(1/(1+r)')) 1 Periods 4% 59 796 0.962 0.952 0.943 0.935 %9 2 3 1.886 1859 1.833 1.808 2.775 2.723 2.673 2.624 4 3.630 3.546 3.465 3.387 5 4.452 4.329 4.212 4.100 6 7 8 9 10 11 12 13 14 16 17 12.166 11.274 10.477 9.763 9122 18 19 20 12.659 11.690 10.828 10 059 9.372 13.134 12.085 11.158 10.336 9.604 13.590 12 462 11.470 10.594 9818 21 14.029 12.821 11.764 10 836 10.01 22 14.451 13.163 12.042 11.061 10.201 23 14.857 13.489 12.303 11 272 10 371 9.550 24 15.247 13.799 12.550 11.469 10.529 9.707 25 15.622 14 094 12.783 11 654 10 675 982) 26 15 983 14 375 13.003 11.826 10.810 9929 27 16 330 14.643 13.211 11.987 10 935 10.027 28 16 663 14 898 13.405 12.137 11.051 10 116 9307 29 30 40 16.984 15.141 13.591 12.278 11.158 10.195 9370 17.292 15.372 13 765 12.409 11.258 10.274 9427 8.694 19.793 17.159 15 046 13.332 11.925 10.757 9.779 8.951 8.650 8022 8% 9% 10% 11% 125 13% 14% 15% 16% 17% 18% 19% 20% 2196 22% 23% 24% 25% 0.926 0.917 0.909 0.901 0.893 0.885 0877 0870 0.862 0855 0847 0.840 0.833 0826 0.820 0.813 0.806 0.800 1.783 1.759 1.736 1.713 1690 1668 1.647 1626 1.605 1585 1.566 1547 1.528 1509 1492 1474 1457 1440 2577 2.531 2487 2444 2402 2361 2.322 2283 2.246 2.210 2.174 2140 2106 2.074 2.042 2011 1981 1952 3.312 3.240 3.170 3.102 3.037 2.974 2914 2855 2.798 2.743 2.690 2.639 2.589 2540 2.494 2448 2.404 2362 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2:689 5242 5.076 4917 4.767 4.623 4.486 4.355 4231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3245 3.167 3.092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4712 4.564 4423 4288 4.160 4.039 3.922 3312 3.706 3.605 3.308 3416 3327 3242 3.161 733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4968 4.799 4.639 4.487 4344 4207 4.078 3954 3.837 3.726 3.619 3.518 3.421 3.329 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328) 5.132 4946 4.772 4.607 4451 4.303 4.163 4031 3.905 3.786 3.673 3566 3.463 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5889 5.650 5.426 5216 5.019 4833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 8.760 8306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453) 5.234 5.029 4.836 4656 4486 4327 4.177 4.035 3.902 3.776 3.656 9.385 8.863 8.384 7.943 7536 7.161 6.814 6492 6194 5918 5.660 5421 5.197 4 988 4.793 4.611 4.439 4278 4127 3.985 3.851 3.725 9.956 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6424 6122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5229 5.008 4.802 4.611 4432 4265 4108 3.962 3.824 15 11.118 10.380 9.712 9.108 8.559 5.061 7.606 7.191 6.811 6462 6142 5847 5515 5.324 5.092 4876 4675 4.489 4.315 4.153 4,001 3.859 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6604 6.265 5934 5.668 5.405 5.162 4.918 3887 4730 4536 4357 4.189 4.033 8.544 5.022 7.549 7.120 6.729 6373 6047 5.749 5.475 5222 4990 4.775 4576 4219 4.391 4059 3910 6.840 6467 6.128 5818 5.534 5.273 8.756 $201 7,702 7250 5.033 4812 4419 4.608 4243 4.080 3.928 8.950 365 7.839 7.366 6.938 5584 5316 6.550 6.1985.877 5.070 4841 4635 4442 4263 4.097 3942 514 9129 5.628 4.870 7963 7469 7025 6623 6.259 5.929 5.353 5.101 4.279 4.110 3954 4657 4.460 7.562 9.292 8649 8.075 5973 6687 6312 7.102 4891 5665 5.384 5127 4675 4476 4292 4.121 3963 7645 7170 6.743 6359 6011 5.696 5410 5149 4909 4690 4.488 4.302 4.130 3970 9.442 8.772 8.176 6.399 6044 4.703 5.723 5412 5.167 4925 4.499 4311 4.137 3.976 8883 8260 7715 7230 6.792 4318 4.143 7.784 3.981 8.985 8348 6.414 7.283 6.835 6.073 5.746 5451 5.182 4937 4713 4507 5.195 4.948 4.721 7.843 7.330 6873 6464 6,097 5.766 5.467 4.147 4.514 4.323 3.985 9077 8422 9.161 4151 3918 8.488 7.896 7372 6.906 6491 6115 5.783 5.450 5.206 4956 4728 4520 4328 4.734 5492 5215 4964 6314 6136 5.798 4.524 4.332 8.548 7.943 7409 6.935 9.237 4739 6152 4328 7984 7441 5810 5.502 5221 4970 8602 6.961 6534 5.820 5.510 5.229 4.975 4.743 4.531 7470 6.953 6.551 6166 4.160 3.995 7.496 7.003 6.566 6.177 5.829 5517 5235 4979 4.746 4.314 4.339 8.055 6.612 4997 8244 7634 7105 6.233 5871 5.548 5.258 4760 4.544 4347 4.166 3.999 4.154 3.990 4.335 4.157 1992 4.337 4.159 399