The management of Kunkel Company is considering the purchase of a $34,000 machine that would reduce operating costs by $4,100 per year. At the end of the machine's 14-year useful life, it will have zero scrap value. The company's required rate of return is 9%. (Ignore income taxes.)
To determine the appropriate discount factor(s) using tables, click here to view Exhibit 14B-1 and Exhibit 14B-2. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem.Whats the net cash flow?