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The management of Kunkel Company is considering the purchase of a $21,000 mochine that would reduce operating costs by $5,000 per year. At the end

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The management of Kunkel Company is considering the purchase of a $21,000 mochine 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 refum is 12 . Click here to view Exhibitit28.1 and Exh bit.128-2, to determine the appropriate discount factor(s) using table. Required: 1. Determine the net present value of the investment in the mochine. 2. What is the difference between the total, undiscounted cash infiows and cash outfows over the entire life of the machine? Complete this question by entering your answers in the tabs below. Determine the net present value of the imvestment in the mochine. (Negative amounts jhould be indicated by a ininus zign Round your final answer to the nearest whole doliar anseunt. Use the approbriate table to determine the discount factor(5).) Wendeli's Donut Shoppe is investigating the purchase of a new $39.600 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $5.400 per yeac In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,500 dozen more donuts each year. The company reailzes a contribution margin of $2.00 per dozen donuts sold. The new machine would have a six-year useful ife. Click here to view Exbibit 128-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using tables. Required: 1. What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? 2. What discount factor should be used to compute the new machine's internal rate of return? (Round your answers to 3 decimal places.) 3. What is the new machine's internal rate of return? (Round your final answer to the nearest whole percentage.) 4. In addition to the data given previously, assume that the mochine will have a \$11.780 salvage value of the end of six years. Under these conditions, what is the internol rate of return? (Hint: You may find it helpful to use the net present value approoch; find the discount rate that will cause the net present value to be closest to zero.) (Round your final answer to the nearest whole percentaged

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