2 Return to question 4 a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $20,400. b. A machine costs $480,000. has a $22,700 salvage value is expected to last eight years, and will generate an after tax income of $72,000 per year after straight-line depreciation Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment PV of $1. EV of S1. PVA $1.and EVA OS1) (Use appropriate factor(s) from the tables provided) Answer is complete but not entirely correct Complete this question by entering your answers in the tabe below. Required A Required A machine costs $480,000, has a $22,700 salvage value, is expected to last eight years, and will generate an after-tax Income of $72,000 per year after straight-line depreciation (Round your answers to the nearest whole dollar) Cash Flow Annual Cash Now Residual value Amount 129,163 Factor 5.3349 Present Value 689,072 $ $ Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present Value 22,700X 0,4665 10.590 OOO 699,662 480.000 216,658 $