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The management of Kunkel Company is considering the purchase of a $24,000 machine that would reduce operating costs by $6,000 per year. At the end

The management of Kunkel Company is considering the purchase of a $24,000 machine that would reduce operating costs by $6,000 per year. At the end of the machines five-year useful life, it will have zero salvage value. The companys required rate of return is 13%.

What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine?

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