The management of Kunkel Company is considering the purchase of a $34,000 machine that would reduce operating costs by $9,000per 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 12B-1 and Exhibit 128-2, 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 outfiows over the entire life of the machine?Complete this question by entering your answers in the tabs below.Required 1 Required 2What 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< Required 1Required 2 > Dinham Kennel uses tenant-days as Its measure of activity; an anlmal housed in the kennel for one day Is counted as one tenant-day. During March, the kennel budgeted for 4,000 tenant-days, but Its1actual level of activity was 4,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:Data used In budgeting:Fixed elementVariable elementper monthper tenant-dayRevenue34.90Wages and salariesFood and suppliesFacility expensesAdministrative expenses2,9007.901,90014.408,4003.406,9000.40Total expenses20,10026.10Actual results for March:$131,231$ 28,590$ 60,575$ 21,800$ 7,099RevenueWages and salariesFood and suppliesFacility expensesAdministrative expensesThe revenue varlance for March would be closest to:Multiple Choice$8.369 U$9,765 U$9,765 F$8.369 F

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The management of Kunkel Company is considering the purchase of a $34,000 machine that would reduce operating costs by $9,000 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 12B-1 and Exhibit 128-2, 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 outflovws should be indicated by a minus sign.) Total difference in undiscounted cash infows and outflows < Required 1 Required 2

The management of Kunkel Company is considering the purchase of a $34,000 machine that would reduce operating costs by $9,000 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 12B-1 and Exhibit 128-2, 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 outflovws should be indicated by a minus sign.) Total difference in undiscounted cash infows and outflows < Required 1 Required 2

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4PB

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