ch 12 #5 The management of Kunkel Company Is considering the purchase of a $26,000 machine that would reduce operating costs by $6500 per year. At the end of the machines five-year useful life, it will have zero salvage value. The companies required rate of return is 16%. 1) determine the net present value of the investment on the machine. 2) what is the difference between the total, undiscounted cash inflows and cash out flows over the entire life of the machine?  Can you show me how to do this? Also, i don’t know which chart I’m supposed to use.
Extracted text: History Bookmarks Profiles Tab Window Help ACKMAN: X O Question 5 - Chapter 12 Home X O exhibit_12B_1.jpg (1317x951) mheducation.com/Media/Connect_Production/bne/accounting/brewer_8e/exhibit_12B_1.jpg EXHIBIT 12B-1 Present Value of $1; (1+ r)" 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 0.962 0,952 0943 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 0.706 0.694 0.683 0.672 0,661 0.650 0,640 1 2. 0925 0907 0890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0889 0864 0.840 0.816 0.794 0.772 0,751 0.731 0,712 0,693 0.675 0658 0641 0.624 0,609 0.593 0,579 0,564 0,551 0.537 0,524 0,512 0.499 0.482 0.467 0.451 0.437 0.423 0.410 3 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 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0,790 0746 0,705 0,666 0.630 0,596 0564 0,535 0,507 0.480 0456 0432 0410 0,390 0.370 0.352 0.335 0.319 0.303 0289 0275 0262 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 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 6. 0.296 0.279 0.263 0.249 0.235 0.222 0.210 8. 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 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 9 10 0.176 0.162 0.149 0137 0.126 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0195 0178 0.162 0.148 0135 0123 0112 0103 0094 0.086 0.124 0112 0.102 0.092 0083 0.076 0.069 0.104 0.093 0.084 0.075 0.068 0.061 0 055 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0187 0168 0152 0137 13 0601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0 204 0182 0163 0.145 0130 0.116 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0141 0.125 0.111 0.099 0.088 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 0140 0.123 0.108 0.095 0.084 0.074 0.065 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 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0146 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 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 17 18 0.494 0.416 0.350. 0.296 0.250 0.212 0180 0.153 0.130 011 19 0475 0.396 0.331 0.277 0.232 0194 0164 0138 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 20 0.456 0.377 0.312 0.258 0.215 0178 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 0.439 0.359 0.294 0.242 0199 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 0184 0.150 0123 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 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 0.310 0.247 0197 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 23 0.406 0.326 0.262 0.211 0170 0138 0112 24 25 0.375 0.295 0.233 0184 0146 0116 0.092 0.074 0.059 0.047 0.0038 0.030 0.024 0.020 0016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 26 0361 0.281 0.220 0.172 0.135 0106 0084 0066 0.053 0.042 0.033 0.026 0.021 0,017 0.014 0.009 0.007 0.006 0.005 0.004 0.003 27 0.347 0.268 0.207 0.161 0125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.333 0.255 0196 0150 016 0,090 0.069 0.054 0.042 0.033 0.026 0.020 0016 0012 0010 0.008 0.006 0.005 0004 0.003 0.002 0.002 28 29 0.321 0.243 0.185 0141 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 30 0.099 0.075 0057 0.044 0.033 0026 0.020 0.015 0.012 0009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0308 0231 0174 0.131 40 0.208 0142 0.097 0.067 0046 0032 0 022 0015 0.011 0.008 0.005 0.004 0003 0.002 0001 0.001 0.001 0.000 0.000 0.000 0000 0.000 AUG 2 W 80 F3 888 F4 FS F6 F7 F10 %23 & 3 4. 7. 8 6. R. T. Y 00
Extracted text: w History Profiles の 全 0 Bookmarks Tab Window Help E TACKMAN: x 6 Question 5 - Chapter 12 Home x O exhibit_12B_2.jpg (1344x954) x + a.mheducation.com/Media/Connect_Production/bne/accounting/brewer_8e/exhibit_12B_2.jpg EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; (1+r 20% 21% 22% 23% 24% 25% 7% 0.962 0.952 0.943 0.935 0.926 0.917 Periods 4% 5% 6% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 1 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 1.886 1.859 1.833 1.808 1.783 1759 1736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 3 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 4 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 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 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 3.410 3.326 3.245 3.167 3.092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 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 8 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 9. 7435 7108 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 10 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 11 8.760 8.306 7.887. 7.499 7139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4836 4.656 4486 4.327 4.177 4.035 3.902 3.776 3.656 12 9.385 8.863 8.384 7.943 7.536 7161 6.814 6.492 6194 5.918 5.660 5.421 5.197 4988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 13 9.986 9.394 8.853 8.358 7.904 7.487 7103 6.750 6.424 6.122 5.842 5.583 5.342 5118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 14 10.563 9.899 9.295 8745 8.244 7.786 7367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4,611 4.432 4.265 4.108 3.962 3.824 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 15 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7191 16 11.652 10.838 10.106 9.447 8.851 8.313 7824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4189 4.033 3.887 17 12.166 11.274 10.477 9.763 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 8.756 8.201 7702 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 9 604 8 950 8.365 7839 7366 6.938 6.550 6.198 5877 5.584 5.316 5.070 4843 4.635 4442 4.263 4.097 3.942 9.122 8.544 8.022 7.549 7120 18 12.659 11.690 10.828 10.059 9.372 19 13.134 12.085 11.158 10.336 9.604 20 13.590 12.462 11.470 10.594 9.818 9.129 8514 7963 7469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870. 4.657 4.460 4.279 4.110 3.954 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7562 7102 6.687 6.312 5.973 5.665 5.384 5127 4891 4675 4.476 4.292 4.121 3.963 22 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7170 6.743 6.359 6.011 5.696 5.410 5.149 4909 4.690 4.488 4.302 4.130 3.970 23 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 24 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 25 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7843 7.330 6873 6.464 6.0975766 5.467 5195 4948 4.721 4.514 4.323 4.147 3.985 26 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7372 6.906, 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 11.987 10.935 10.027 9.237 8 548 7.943 7.409 6.935 6.514 6.136 5,798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 27 16.330 14.643 13.211 28 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7984 7.441 6.961 6,534 6152 5.810 5502 5.223 4970 4.739 4,528 4.335 4.157 3.992 29 16.984 15.141 13.591 12.278 1158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4.339 4160 3.995 30 40 19.793 17159 15.046 13.332 11.925 10.757 9779 8.951 8.244 7634 7105 6.642 6.233 5871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 AUG 2 8 w