The management of Kunkel Company is considering the purchase of a $26,000 machine that would reduce operating costs by $6,500 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 16%. Click here to view Exhibit 138-Fand Exhibit 13B-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 amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount. Use the appropriate table to determine the discount factor(s).) Net present value Required 2 > EXHIBIT 13B-1 Wedst Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.705 0.694 0.683 0.672 0.661 0.650 0.640 O 889 0.864 O 840 08 16 0 794 0772 0.751 0 731 0.712 0.693 0675 0.658 0.641 0624 0.609 0.593 0.579 0 564 0551 0.537 0.524 0.512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 5 0822 0784 0.747 0.713 0681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0476 0456 0437 0419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0,410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.750 0.711 0.665 0.623 0.583 0 547 0513 0482 0.452 0.425 0.400 0.376 0.354 0333 0.314 0.296 0279 0.263 0249 0235 0.222 0.210 8 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0 351 0.327 0.305 0.285 0 266 0 249 0.233 0.218 0 204 0.191 0.179 0.168 9 0 .703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.550 0.500 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.125 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 0.308 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.250 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.06 0.061 0.055 14 0.577 0.505 0.442 0.388 0 340 0.299 0 263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.008 0.078 0.069 0.062 0055 0.049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.014 0.074 0.005 0.057 0.051 0.045 0.040 0.035 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 17 0.513 0.436 0.371 0317 0 270 0.231 0.19 0.170 0 146 0.125 0.108 0093 0.080 0069 0.060 0 052 0045 0039 0.034 0030 0.026 0023 18 0.494 0.416 0.350 0 206 0.250 0212 0.18 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0 051 0.044 003 0032 0028 0024 0.021 0.018 190.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.050 0.051 0043 0.037 0031 0.027 0.023 0.020 0.017 0.014 20 0.456 0.377 0.312 0.250 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0,016 0.014 0.012 21 0430 0.359 0.204 0,242 0.199 0.164 0.135 0.112 0,093 0.077 0.064 0.053 0.044 0.037 0,031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 23 0.406 0.326 0.262 0211 0.1700.138 0.112 0091 0.074 0.060 0.049 0.040 0.033 0.027 0022 00180 015 0012 0010 0.009 0.007 0.006 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 26 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 27 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 0.002 0.333 0.255 0 196 0.150 0 116 0000 0 059 0054 0042 0033 0.026 0020 0016 0012 0010 OOOR 0.006 0005 004 0.003 0.002 0.002 29 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.005 0.005 0.004 0.003 0.002 0.002 0.002 0.308 0.231 0.174 0.131 0099 0.075 0.057 0044 0.033 0026 0.020 0,015 0,012 0.000 0.007 0.005 0004 0.003 0.003 0.002 0.002 0.001 40 0.208 0 142 0097 0.067 0.046 0.032 0.022 0015 0011 0008 0.005 0004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0 000 EXHIBIT 18-2 Present Value of an Aonekty of $1 in Arms-a Periods 4% 5% 6% 7 1 % 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23 24 25 0.962 0 952 0943 0935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 O B06 O 800 1886 1859 1837 RON 1703 1759 1.736 1.713 1.690 1.668 1647 1.626 1605 1.585 1566 1.547 1520 1.500 1.492 1474 1.457 1.440 2.775 2.723 2.673 2624 2.577 2.531 2.487 2.444 2.402 2.361 2322 2283 2246 2210 2.174 2.140 2.106 2.074 2042 2011 1.981 1952 3.630 3.546 3465 387 3312 3.240 2.170 3.102 3.037 2.974 2914 2 855 2.798 2 743 2.690 2639 2 589 2540 2494 2448 2404 2362 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3274 3.199 3.127 3.058 2.991 2.926 2 864 2.803 2.745 2.689 8 9 10 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 2.410 2.326 3.245 2.167 3.092 3.020 2.951 6.002 5.786 5582 5.389 5206 SA 4.868 4.712 4564 4.423 4.288 4.160 4039 3.922 3.812 3706 3.605 2.BOR 3.416 3327 3242 3.161 6.733 .463 6.2 105.971 5.747 5.535 5.335 5. 146 4.968 4.799 4.639 4.487 4 344 4 207 4078 3.954 3.837 3.726 3.619 3.518 3.421 3329 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5,019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 10.563 9899 9.295 8.745 8244 7.786 7.367 6.982 6,628 6.302 6.002 5.724 5.468 5229 5.000 4.802 4611 4432 4265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 11 12 13 14 15 16 11.652 10.838 10.106 9.447 8851 8.313 7.824 7 379 6.974 6,604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4 033 3.887 17 12 166 11.274 10.477 9.763 9.122 8,544 8022 7.549 7.120 6.729 6 373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 18 12 659 11 690 10 828 10 059 9 372 8.756 8. 201 7.702 7.250 6.840 6 467 6.128 5818 5 534 5.273 5033 4.812 4.60B 4.419 4.243 4.080 3.928 19 13.134 12 035 11.158 10 336 9.604 8950 8365 7.839 7 366 6.938 6.550 6.198 5.877 5.584 5 316 5.070 4.843 4635 4.442 4.263 4,097 3.942 2013 590 12.462 11.470 10 594 9818 9.129 8514 7.963 7.469 7025 6623 6.259 5.929 5.628 5.353 5.101 4.870 4657 4.460 4279 4.110 3.954 21 23 24 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6,687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14.451 13 163 12042 11 061 10 201 9442 8.772 8.176 7645 7.170 6.743 6 359 6 011 5.696 5410 5 149 4.909 4.690 4.488 4.302 4.130 3970 14.857 13 489 12 303 11.222 10.371 9580 8.883 8 266 7.718 7.230 6 792 6 399 6044 5723 5.432 5 167.4925 4.703 4.499 4.311 4.137 3.976 15 247 13 799 12 550 11.469 10 529 9707 8.985 8.348 7.784 7.283 6.835 6.434 6073 5.746 5 451 5 1824937 4.713 4.507 4318 4.143 3981 15.622 14 094 12 783 11 654 10 675 9823 9.077 8.422 7.843 7.330 6.873 6.464 6097 5.766 5467 5 1954.948 4.721 4.514 4.323 4.147 3985 27 2615983 14.375 13.003 11.826 10810 9929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4 956 4 728 4520 4328 4.151 3988 16 330 14 643 13 11 11 07 10 935 10027 9237 8548 7943 7 409 6 935 6514 6.136 5 70 5.492 52154 064 4734 4524 4332 4.154 2 990 28 16.663 14 898 13 406 12.137 11 051 10.116 9307 8.602 7.984 7.441 6.961 6 534 6 152 5810 5 502 5223 4970 4739 4528 4 335 4.157 3 992 16.984 15.141 13.591 12 278 11.158 10 198 9.370 8650 8 022 7.470 6.983 6.551 6.166 5820 5510 5229 4 975 4.743 4.531 4.337 4.159 3 994 30 17.292 15 372 13.765 12.409 11 258 10 274 9.427 8 694 8055 7.495 7.003 6.566 6.177 5 829 5 517 5235 4 979 4.745 4534 4339 4.160 3.995 40 19.793 17.159 15 046 13.332 11925 10.757 9.779 8951 8 244 7.634 7.105 6.642 6 233 5 871 5548 5258 4 997 4 760 4544 4.347 4. 166 3.999