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The management of Kunkel Company is considering the purchase of a dollar 36, 000 machine that would reduce operating costs by dollar 8, 500 per

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The management of Kunkel Company is considering the purchase of a dollar 36, 000 machine that would reduce operating costs by dollar 8, 500 per year At the end of the machine's five-year useful life, it will have zero scrap value The company's required rate of return is 13 percentage Click here to view Exhibit 11B-1 and Exhibit 11B-2. to determine the appropriate discount factor(s) using tables. Required: Determine the net present value of the investment in the machine. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factors).) 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.) Cleirmont Corporation is considering the purchase of a machine that would cost dollar 210, 000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of dollar 21, 000. By reducing labor and other operating costs, the machine would provide annual cost savings of dollar 45, 000. The company requires a minimum pretax return of 7 percentage on all investment projects. (Ignore income taxes in this problem.) Click here to view Exhibit 11B-1 and Exhibit 11B-2. to determine the appropriate discount factor(s) using tables. The net present value of the proposed project is closest to (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount) dollar 10, 527) dollar 19, 447 dollar 15, 000 dollar (25, 874)

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