The management of Kunkel Company is considering the purchase of a $23,000 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 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 2 Required 1 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> The management of Kunkel Company is considering the purchase of a $23,000 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 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 Determine the net present value of the investment in the machine. (Negative amount should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s). Round your final answer to the nearest whole dollar amount.) Net present value Required 1 Required 2 EXHIBIT 12B-1 Present Value of $1; (1r Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 179% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0952 0.943 0935 0926 0917 0.909 0901 0.893 0.885 0.877 0.870 0862 0.855 0847 0840 0833 0.826 0820 0.813 0806 0800 2 0.925 0907 0.890 0873 0.857 0842 0826 0812 0.797 0.783 0769 0756 0.743 0731 0718 0.706 0.694 0.683 0672 0.661 0.650 0640 0.889 0.864 0.840 0816 0794 0772 0.751 0731 0.712 0.693 0.675 0.658 0.641 0.624 0609 0.593 0.579 0.564 0.551 0537 0524 0512 4 0855 0823 0792 0763 0735 0708 0683 0659 0636 0613 0,592 0572 0552 0534 0516 0499 04820.467 0451 0.437 0423 0.410 5 0.822 0784 0.747 0713 0681 0.650 0.621 0.593 0.567 0.543 0519 0497 0476 0.456 0437 0.419 0402 0.386 0.370 0355 0.341 0328 0790 0746 0705 0666 0.630 0596 0564 0535 0507 0.480 0456 0.432 0410 0.390 0.370 0.352 0.335 0.319 0.303 0289 0275 0262 0.760 0711 0.665 0.623 0.583 0547 0.513 0482 0452 0425 0400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0249 0.235 0.222 0210 0731 0677 0627 0582 0.540 0.502 0467 0434 0404 0.376 0351 0.327 0305 0.285 0266 0249 0233 0.218 0204 0191 0179 0168 0.155 0144 0,134 0703 0.645 0.592 0544 0.500 0460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0243 0.225 0209 0.194 0180 0.167 0162 0149 0.126 0116 0107 10 0.676 0614 0.558 0.508 0.463 0422 0386 0352 0322 0.295 0270 0247 0227 0.208 0191 0.176 0137 11 0650 0585 0.527 0475 0.429 0.388 0350 0.317 0287 0.261 0237 0.215 0195 0178 0162 0.148 0.135 0.123 0112 0103 0094 0086 0.625 0.557 0.497 0444 0.397 0.356 0.319 0.286 0257 0.231 0.208 0.187 0.152 0137 0.124 0112 0.102 0.092 0.083 0.076 0069 12 0.168 13 0.601 0530 0.469 0415 0.368 0326 0290 0258 0229 0204 0182 0163 0145 0130 0116 0104 0093 0084 0075 0068 0061 0055 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0181 0160 0141 0.099 0088 0078 0069 0.062 0.055 0049 0.044 0.125 0.111 15 0555 0481 0.417 0362 0.315 0275 0239 0209 0183 0160 0140 0123 0108 0095 0084 0074 0065 0.057 0051 0045 0040 0035 16 0.534 0458 0.394 0.339 0.292 0.252 0.218 0188 0.163 0.141 0.123 0107 0093 0.081 0.071 0.062 0.054 0.047 0.042 0036 0.032 0028 17 0.513 0436 0.371 0.317 0.270 0231 0.198 0170 0146 0125 0.108 0.093 0080 0069 0.060 0.052 0045 0039 0034 0.030 0026 0023 18 0.494 0416 0.350 0296 0.250 0212 0180 0,153 0130 0.111 0095 0.081 0069 0059 0051 0044 0038 0032 0028 0.024 0021 0.018 19 0.475 0.396 0.331 0277 0.232 0194 0164 0138 0116 0.098 0083 0070 0060 0.051 0043 0.037 0.031 0027 0.023 0020 0017 0014 0.031 0.026 0022 0019 0.016 0014 0012 20 0.456 0.377 0.312 0.258 0.215 0178 0.149 0124 0.104 0.087 0.073 0.061 0051 0.043 0037 21 0.439 0.359 0.294 0.242 0.199 0164 0.135 0112 0.093 0.077 0.064 0.053 0044 0037 0.031 0.026 0.022 0018 0.015 0.013 0.011 0009 22 0.422 0342 0,278 0226 0.184 0150 0123 0101 0.083 0.068 0.056 0046 0.038 0032 0026 0022 0018 0015 0013 0011 0.009 0007 23 0.406 0.326 0.262 0.211 0.170 0138 0112 0.091 0074 0.060 0.049 0.040 0.033 0.027 0.022 0018 0015 0012 0.010 0009 0.007 0006 24 0.390 0.310 0.247 0197 0158 0126 0.102 0082 0.066 0.053 0.043 0035 0028 0023 0019 0015 0013 0010 0.008 0.007 0006 0.005 0.375 0295 0.233 0184 0,009 0,007 0,.006 0005 0.004 25 0.146 0116 0.092 0.074 0059 0.047 0.038 0.030 0.024 0.020 0.016 0,013 0010 26 0361 0.281 0.220 0172 0.135 0106 0.084 0.066 0.053 0042 0033 0.026 0.021 0.017 0014 0011 0.009 0.007 0.006 0.005 0.004 0.003 27 0.347 0268 0.207 0161 0.125 0.098 0076 0060 0.047 0037 0029 0023 0018 0014 0011 0.009 0007 0.006 0005 0.004 0003 0002 28 0.333 0255 0.196 0150 0116 0.090 0069 0.054 0042 0.033 0.026 0.020 0.016 0.012 0010 0.008 0.006 0.005 0.004 0003 0.002 0002 0.321 0243 0 185 0008 0006 0005 0004 0.003 0,002 0002 0002 29 0.141 0.107 0.082 0063 0048 0.037 0029 0022 0017 0014 0011 30 0.308 0231 0.174 0131 0.099 0.075 0.057 0.044 0033 0026 0020 0.015 0012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0001 40 0.208 0142 0.097 0,067 0046 0,032 0022 0,015 0011 0,008 0,005 0,004 0003 0002 0001 0001 0001 0.000 0,000 0000 0,000 0,000 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears 1- Periods 4% 5% 6% 79% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0901 0.893 0.885 0877 0.870 0862 0855 0847 0.840 0833 0.826 0820 0.813 0.806 0800 1 1.886 1.859 1.833 1.808 1.783 1759 1736 1713 1.690 1.668 1647 1.626 1605 1.585 1.566 1547 1.528 1.509 1492 1474 1.457 1440 2.775 2.723 2.673 2.624 2.577 2.531 2487 2.444 2.402 2.361 2322 2.283 2.246 2.210 2.174 2140 2.106 2.074 2.042 2.011 1.981 1952 3.037 2974 2914 2855 2798 2743 2690 2639 2.589 2.540 2 494 2.448 2404 2.362 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 4.452 4329 4212 4.100 3.993 3.890 3791 3696 3605 3.517 3433 3352 3.274 3199 3127 3058 2991 2.926 2864 2803 2.745 2689 5.242 5,076 4 917 4767 4.623 4.486 4355 4231 4111 3998 3889 3784 3.685 3589 3.498 3410 3.326 3.245 3167 3.092 3.020 2951 6 6.002 5.786 5.582 5.389 5.206 5.033 4868 4712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3605 3.508 3416 3.327 3.242 3.161 5.535 5.335 5.146 4968 4799 4639 4487 6.733 6.463 6.210 5.971 5.747 4.344 4207 4078 3954 3.837 3.726 3619 3.518 3.421 3.329 9 7435 7108 6802 6515 6.247 5,995 5759 5537 5.328 5132 4946 4772 4607 4451 4303 4.163 4031 3.905 3786 3673 3566 3463 4.054 3.923 3.799 10 8.111 7722 7360 7.024 6.710 6.418 6145 5.889 5.650 5.426 5.216 5.019 4833 4659 4494 4.339 4.192 3.682 3.571 8.760 8.306 7887 7499 7139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4327 4.177 4.035 3.902 3776 3656 3.851 3725 9.385 8863 8.384 7943 7.536 7.161 6.814 6.492 6.194 5918 5660 5.421 5197 4988 4793 4611 4439 4.278 4127 3.985 9.986 9.394 8.853 8.358 7904 7487 7103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4910 4715 4.533 4.362 4.203 4.053 3.912 3.780 13 9.295 8.244 7786 14 10.563 9.899 8.745 7.367 6.982 6628 6.302 6.002 5.724 5.468 5.229 5.008 4802 4.611 4.432 4265 4108 3.962 3.824 14 11.118 10.380 9712 9.108 8.559 8.061 7606 7191 6.811 6462 6.142 5.847 5575 5.324 5.092 4876 4.675 4.489 4315 4153 4.001 3.859 7824 7379 16 11.652 10 838 10106 9.447 8851 6.974 6604 6.265 5.954 5668 5405 5162 4.938 4730 4536 4357 4.189 4033 3.887 8.313 17 12.166 11.274 10.477 9.763 8.544 8.022 7549 7120 6.729 6.373 6.047 5.749 5475 5.222 4.990 4775 4.576 4.391 4.219 4.059 3.910 9.122 18 12.659 11.690 10.828 10.0599.372 8.756 8.201 7.702 7.250 6.840 6.467 6128 5.818 5534 5.273 5.033 4812 4.608 4419 4.243 4080 3.928 12.085 11158 10.336 9604 10 13.134 8.950 8.365 7839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4843 4.635 4442 4.263 4.097 3942 13.590 12.462 11470 10.594 9.818 9.129 8.514 7963 7469 7025 6623 6259 5.929 5.628 5.353 5101 4870 4.657 4460 4.279 4110 3.954 20 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7562 7102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 21 4.909 4690 4.488 4302 4130 22 14.451 13.163 12.042 11.061 10.201 9.442 8772 8176 7645 7170 6743 6.359 6.011 5696 5.410 5.149 3.970 9580 8883 8.266 7718 23 14.857 13.489 12.303 11.272 10.371 7.230 6792 6.399 6.044 5723 5.432 5167 4.925 4.703 4.499 4.311 4.137 3.976 24 15.247 13.799 12.550 11.469 10.529 9.707 8985 8.348 7784 7.283 6835 6.434 6.073 5.746 5.451 5.182 4937 4713 4.507 4318 4143 3981 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8422 7843 7330 6873 6.464 6.097 5766 5.467 5195 4948 4721 4.514 4.323 4147 3.985 25 26 15.983 14.375 13.003 11.826 10.810 9.929 9161 8.488 7896 7372 6906 6.491 6118 5,783 5480 5.206 4956 4728 4520 4328 4151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7943 7409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4524 4.332 4.154 27 3.990 16.663 14.898 13.406 12137 11051 28 10.116 9.307 8.602 7984 7441 6961 6534 6.152 5810 5.502 5.223 4.970 4739 4528 4.335 4157 3.992 13.591 12278 11158 16.984 15141 10.198 9370 8650 8.022 7470 6.983 6.551 6166 5820 5.510 5.229 4975 4743 4,531 4.337 4159 3.994 30 17.292 15.372 13.765 12.409 11.258 10.274 9427 8.694 8.055 7496 7003 6.566 6177 5829 5.517 5.235 4979 4746 4534 4.339 4.160 3.995 19.793 17159 15.046 13.332 11.925 10.757 9.779 8.951 8244 7.634 7.105 6.642 6233 5.871 5.548 5.258 4.997 4760 4.544 4.347 4.166 3.999 40