The management of Kunkel Company is considering the purchase of a $$27,000$ machine that would reduce operating costs by $$7,000$ 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 $12\%.$

$1.$ 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?