a. A new operating system for an existing machine is expected to cost $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $22,800. b. A machine costs $570,000, has a $34,700 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation. Assume the company requires a 12% 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.) Answer is not complete. 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 $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $22,800. (Round your answers to the nearest whole dollar.) Amount X PV Factor Cash Flow Annual cash = Present Value Select Chart Present Value of an Annuity of 1 Present Value of 1 $ flow 0 Residual value = 0 Present value of cash inflows Immediate cash outflows Net present value OO a. A new operating system for an existing machine is expected cost $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $22,800. b. A machine costs $570,000, has a $34,700 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation. Assume the company requires a 12% 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.) X Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $570,000, has a $34,700 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Amount PV Factor Present Value Cash Flow Annual cash flow Residual value Select Chart Present Value of an Annuity of 1 Present Value of 1 = $ 0 0 Present value of cash inflows Immediate cash outflows Net present value