2 Kunkel Company is considering the purchase of a $33,000 machine that would reduce...

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Accounting

2
Kunkel Company is considering the purchase of a $33,000 machine that would reduce operating costs by $8.500 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 16%.
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What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine?
Note: Any cash outflows should be indicated by a minus sign.
Total difference in undiscounted cash inflows and outflows
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