Question: Exercise 12-2 (Static) Net Present Value Analysis (LO12-2) 2457 The management of Kunkel Company is considering the purchase of a $27,000 machine that would reduce

 Exercise 12-2 (Static) Net Present Value Analysis (LO12-2) 2457 The management

Exercise 12-2 (Static) Net Present Value Analysis (LO12-2) 2457 The management of Kunkel Company is considering the purchase of a $27,000 machine that would reduce operating costs by 57,000 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 12% Click here to view Exhibit 128-1 and Exhibit 128-2. 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 nces 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 >

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