Answers questions 1-2 The management of Kunkel Company is considering the purchase of a $32,000 machine that would reduce operating costs by$8,000 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's required rate ofreturn is 13%.Click here to view Exhibit 14B-1 and Exhibit 14B-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 1Required 2indicated by a minus sign.Determine the net present value of the investment in the machine. (Negative amounts shouldRound your final answer to the nearest whole dollar amount. Use the appropriate table to determine the discount factor(s).)Net present valueRequired 1Required 2 >< PrevNext >2 of 8search近 The management of Kunkel Company is considering the purchase of a $32,000 machine that would reduce operating c$8,000 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's requirereturn is 13%.Click here to view Exhibit 14B-1 and Exhibit 14B-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 machComplete this question by entering your answers in the tabs below.Required 1Required 2What 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< Prev2 of 8Next >近

Net Present Value It is the difference between Cash Outflow and Present Value Cashflow. NPV =…

The management of Kunkel Company is considering the purchase of a $32,000 machine that would reduce operating costs by $8,000 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 13%. Click here to view Exhibit 14B-1 and Exhibit 14B-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 mounts should he indicated hy a minus sian.