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Accounting

Q1) Management of Kunkel Company is thinking of purchasing of a $40,000 machine which would decrease operating costs by $7,000 per year. At the end of machine eight-year useful life, it will have zero scrap value. Company required rate of return is 12% on all investment projects.

problem:

1. Find out net present value of investment in machine.

2. prepare down the difference between total, undiscounted cash inflows and cash outflows over whole life of machine?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M918794

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