The management of Kunkel Company is considering the purchase of a $35,000 machine that would reduce operating costs by $8,500 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 16%.

Required:
1.	Determine the net present value of the investment in the machine.

1. Show formula inputs and calculations for Present Value of the Cash Inflows: Item Amount PV of Cash Inflows 2. Show calculations for Net Present Value: Item Amount Net Present Value