Question: Old MathJax webview not a computer science question an accounting question Savod The management of Kunkel Company is considering the purchase of a $25,000 machine

Old MathJax webview

Old MathJax webview not a computer science question an accounting question Savod

The management of Kunkel Company is considering the purchase of a $25,000

machine that would reduce operating costs by $6,000 per year. At the

end of the machine's five-year useful life, it will have zero salvage

not a computer science question an accounting question

Savod The management of Kunkel Company is considering the purchase of a $25,000 machine that would reduce operating costs by $6,000 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 14B:1 and Exhibit 148-2. 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).) Not present value The management of Kunkel Company is considering the purchase of a $25,000 machine that would reduce operating costs by $6,000 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 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. What 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 EXHIBIT 14B-2 Present Value of an Annulty of $1 in Arrears; (1+)" 53 Periods 1 2 3 0.952 179 495 0.962 1886 2775 3.630 4.452 1859 2723 3.546 4329 6% 0.943 1833 2.673 3.465 4212 0.935 1.808 2.624 3.387 4.100 895 0.926 1783 2577 3.312 3.993 4 5 9% 0.917 1759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6 5.076 4.767 5.786 3.410 8 9 5.242 6.002 6.733 7.435 8.111 6.463 7108 7722 4.917 5.582 6.210 6.802 7360 5389 5.971 6.515 4.623 5.206 5.747 6.247 6.710 10 7.024 12 3 14 15 6.805 7.161 7.487 7.786 8.061 7499 7.139 7.943 7536 8.358 7.904 8.745 8.244 9.108 8.559 9447 8.851 9.763 9.122 10.059 9.372 10.336 9.604 10.594 9.818 8.760 8.306 7887 9.385 8.863 8.384 9.986 9394 8.853 10.563 9.899 9.295 11.118 10.380 9.712 11.652 10.838 10.106 12,166 11.274 10.477 12.659 11.690 10.828 13.134 12085 11.158 13.590 12.462 11470 14.029 12.821 60 14.451 13.163 12.042 14.857 13.489 12/303 15.247 13.799 12.550 15.622 14.094 12783 16 17 18 19 20 7379 10% 11% 12 1398 149 15% 16% 18% 1994 0.909 0.901 20% 2196 2 | 23% 0.893 0.885 0.877 24% 2596 0.870 0.862 0.855 0.847 0.840 0.833 0.826 1736 1.713 0.820 0.813 0.806 0.800 1.690 1.668 1.647 1626 1.605 1.585 1.566 1547 1.528 2487 2444 2.402 2.361 2.322 2.283 2.246 1.509 1.492 1.474 1.457 1.440 2.210 2,174 2.140 2.106 2.074 2.042 2011 3.102 1.981 1.952 3.037 2.974 2.914 2.855 2.798 2.7743 2.690 2639 2.589 2.540 2494 2.448 2.404 2362 3.791 3.696 3.505 3.517 3.433 3.352 3.274 3.199 3:127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.326 3.245 3.167 3.092 3.020 2.951 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3,812 3.706 3.605 3.508 3.416 3.327 3.242 3:161 5.335 51146 4.968 4799 4.639 4,487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4,000 4.163 4.031 3,905 3.786 3.673 3.566 3.463 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 6.495 6.207 5.938 5,687 5.453 5.234 5,029 4.836 4.656 4.486 4.327 4 4.035 3.902 3.776 3.656 6.814 6.492 6.194 5.918 5.660 5.421 51197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 7:103 611750 6.424 6122 5.842 5.583 5.342 5.118 4.910 4715 4.533 4.362 4.203 4.053 3.912 3.780 71367 6.982 6.629 6.302 6.002 5.324 5.468 5.2295.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 7606 7191 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 24 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 Q.02 7.549 7420 6729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 41391 4.219 4.059 3.910 81201 7.250 6.840 6.467 6.128 5,818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 8.365 7.839 7.366 6.939 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 8.514 7963 74469 1.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 8.649 105 T.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 81176 7.645 72,170 6.743 6.359 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 8.883 81266 7.718 7.230 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 8.985 8.348 7.784 7283 6.835 6.434 6.073 5.746 5.451 502 4.937 4.713 4.507 4.318 4.143 3.981 90 8.422 7.843 7330 6.873 6.454 6.097 5.766 5.467 5.195 4.948 421 4.514 4.323 4.147 3.985 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 9.237 8.548 7943 7,409 6.935 6.514 6.136 5798 5.492 5.215 4.964 4734 4.524 4.332 4.154 3.990 9.307 8.602 7984 7441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 SSD SIDE27470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4159 3.994 9.427 8.694 81055 72496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4339 4.160 3.995 295 81244 7634 7105 6.642 6.233 5.871 5.548 5.258 4.997 4.544 4347 4.166 3.999 8.313 8.544 8.756 8.950 9129 21 22 23 24 6.011 10.836 10.017 9.292 11061 10.201 9.442 11.272 10.371 9.580 11.469 10.529 90707 11.654 10.675 9 11.826 101810 -- 11.987 10.935 10.027 12.137 12051 10.116 12.278 11.158 10.198 12.409 11258 10.274 26 27 15.983 14 375 13.003 16.330 14.643 13.211 16.663 14.898 13.406 16.984 15.141 13.591 77.292 15.372 13.765 29 30 40 19793 17159 15.046 13.332 11.925 10.357 EXHIBIT 143-1 Present Value of 5%, i to 13% Periods 1 2. in N 3 4 5 6 7 8 10 12 smmuu 14 15 495 5% 6% 8% % 10% 129 14% 15% 16% 17% 18% 19% 0.962 0.952 0.943 0.935 0.926 0.917 20% 21% 22% 239 24% 25% 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.925 0.907 0.890 0.873 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.857 0.842 0.826 0.812 0797 0.783 0.769 0756 0.743 0.731 0.718 0.889 0.864 0.840 0.816 0.706 0.694 0.683 0.672 0.661 0.650 0.640 074 02 0.751 0731 0712 0.693 0.675 0.658 0.641 0.624 0609 0.593 0.579 0.564 0.551 0.855 0.823 0.537 0.524 0.512 0.792 0763 0.735 0708 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 0.822 0784 0.437 0.423 0.410 0.747 03 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0456 0437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0746 0705 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 0.760 0.711 0.665 0.623 0.583 0547 0.513 0.482 0.452 0.425 0.4000376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 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 0168 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 0209 0.194 0.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 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 0.126 0.116 0.107 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 072 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.625 0.557 0 0.444 0.397 0356 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 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0,061 0.055 0577 0.505 0.442 0388 0340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.11 0,099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0102 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0.534 0.458 0394 0339 0292 0.252 0.218 0.128 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 0.513 0.436 0.371 0317 0.270 0.231 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0,052 0.045 0.039 0.034 0.030 0.026 0.023 0.494 0.416 0.350 0.296 0.250 0.212 0180 0.153 0.130 0 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0.475 0.396 0331 0277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0.456 0.377 0.312 0.258 0.215 0178 0.149 0124 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 0.439 0.359 0.294 0.242 0199 0164 0135 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 0.422 0.342 0.278 0.226 0184 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 0.00 0.009 0.007 0.406 0326 0.262 0.271 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0310 0.247 0.197 0.158 0126 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 0295 0233 0.184 0146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0361 0281 0.220 012 0135 0.106 0024006 0053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.0090.007 0.006 0.005 0.004 0.003 0.347 0.268 0.207 0161 0125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.0m 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0333 0.255 0196 0.150 0.090 0.069 0.054 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0321 0.243 0185 0 141 0.107 0.082 0.063 0.048 0.037 0.029 0,022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.308 0231 0 0131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0208 0142 0.097 0.067 0.046 0.032 0.022 0.015 00m 0.008 0.005 0,004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0198 16 17 18 19 20 22 23 24 25 aa84 26 22 28 30 40

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