The management of Kunkel Company is considering the purchase of a $30,000 machine that would reduce operating costs by $6,500 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 12%. Click here to view Exhibit 12B-1 and Exhibit 128-2, 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. The management of Kunkel Company is considering the purchase of a $30,000 machine that would reduce operating costs by $6,500 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 12%. 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 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 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; 1/(1-(1/(1+r)^n)) Periods 4% 1 0.962 5% 6% 0.952 0.943 7% 8% 0.935 0.926 9% 10% 11% 12% 0.917 0.909 0.901 0.893 2 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 3 2.775 2.723 2.673 2.624 2.577 2.531 2487 2.444 2.402 2.361 4 3.630 3.546 3.465 3.387 3.312 3.240 5 4.452 4.329 4.212 4.100 3.993 3.890 6 5.242 5.076 4.917 4.767 4.623 7 6.002 5.786 5.582 5.389 5.206 8 6.733 6463 6.210 5.971 5.747 4.486 5.033 5.535 9 7.435 7.108 6.802 6.515 6.247 5.995 10 8.111 7.722 7.360 7.024 6.710 6.418 11 6.805 12 13 14 15 16 17 12.166 11.274 10.477 9.763 18 12.659 11.690 10.828 10.059 9.372 19 13.134 12.085 11.158 10.336 9.604 20 13.590 12.462 11.470 10.594 9.818 21 22 23 24 8.950 9.129 14.029 12.821 11.764 10.836 10.017 9.292 14.451 13.163 12.042 11.061 10.201 9.442 14.857 13.489 12.303 11.272 10.371 9.580 15.247 13.799 12.550 11.469 10.529 9.707 19% 20% 21% 22% 235 0.840 0.833 0.826 0.820 0.81 13% 14% 15% 16% 17% 18% 0.885 0.877 0.870 0.862 0.855 0.847 1.668 1.647 1.626 1.605 1.585 1.566 1547 1.528 1.509 1.492 147 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 201 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 244 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 2.80 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.09 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.32 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.51 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.67 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.795 8.760 8.306 7.887 7.499 7.139 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 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 5.229 5.008 4.802 4.611 4.432 4.265 4.108 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4,419 4.243 8.365 7.839 7.366 6.938 6.550 6.198 5.877 | 5.584 5.316 | 5.070 4.843 4.635 4.442 4.263 8.514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4476 4.292 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4488 4.302 8.883 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5432 5.167 4.925 4.703 4.499 4.311 8.985 8.348 7.784 7.283 6.835 6434 6.073 5.746 5451 5.182 4.937 4.713 4.507 4.318 25 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6464 6.097 5.766 5.467 5.195 4.948 4.721 4514 4 324 EXHIBIT 12B-1 Present Value of $1; (1+r) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 6 0.790 0.746 0.705 0.666 0.630 0.596 7 0.760 0.711 0.665 0.623 0.583 0.547 0.564 0.513 8 0.731 0.677 0.627 0.582 0.540 0.502 9 10 11 12 0.676 0.614 0.558 0.650 0.585 0.527 0.625 0.557 0.497 13 14 16 0.534 0.458 17 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0513 0436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 18 19 20 21 22 23 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 C 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 C 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0 0.535 0.507 0.480 0.456 0.432 0.410 0,390 0.370 0.352 0.335 0.319 0.303 0.289 10 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0. 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0. 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0. 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 03 0.577 0.505 0442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0J 15 0.555 0481 0417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.0 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.0 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.0 0.494 0416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.0 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.0 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.0 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.0 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.108 0.022 | 0.018 0.015 0.015 0.013 0.011 0.0 0.012 0.010 0.009 0.0