5 a. A new operating system for an existing machine is expected to cost $700,000 and have a useful life of six years. The system yields an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $18,400 b. A machine costs $570,000, has a $36,800 salvage value, is expected to last eight years, and will generate an after-tax income of points $78,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its n est (PV of $1, FV of $1, PVA of $1, and FVA of $) (Use appropriate factor(s) from the tables provided.) te the ne prese tva eo each potential investment en om eBook Hint Print Complete this question by entering your answers in the tabs below Required A Required B A new operating system for an existing machine is expected to cost $700,000 and have a useful life of six years. The system yields an incremental after-tax income of 175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $18,400. (Round your answers to the nearest whole dollar.) Cash Flow Amount x PV Factor Present Value Select Chart Annual cash flow Residual value Net present value Required A Required B Mc 5 a. A new operating system for an existing machine is expected to cost $700,000 and have a useful life of six years. The system yields an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $18,400. b. A machine costs $570,000, has a $36,800 salvage value, is expected to last eight years, and will generate an after-tax income of points $78,000 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, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) eBook Hint Print Complete this question by entering your answers in the tabs below. Required AReqird A machine costs $570,000, has a $36,800 salvage value, is expected to last eight years, and will generate an after-tax income of $78,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Annual cash flow Amount xPV FactorPresent Value Select Chart Residual value Net present value KRequired A Required B