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The management of Kunkel Company is considering the purchase of a $42,000 machine that would reduce operating costs by $9,500 per year. At the end

The management of Kunkel Company is considering the purchase of a $42,000 machine that would reduce operating costs by $9,500 per year. At the end of the machines five-year useful life, it will have zero scrap value. The companys required rate of return is 11%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required:

1. Determine the net present value of the investment in the machine. (I have tried the answers 6,888 and 6,889 and they are coming up not correct)

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