a. A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $28.000 b. A machine costs $410,000, has a $35,900 salvage value, is expected to last eight years, and will generate an after-tax income of $80,000 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 S1, and FVA of $1(Use appropriate factor(s) from the tables provided.) 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 $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $28,000. (Round your answers to the nearest whole dollar) Select Chart Amount x PV Factor Present Value Cash Flow Annual cash flow Residual value Net present value Red A Required B > A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $28,000. (Round your answers to the nearest whole dollar.) Select Chart Amount PV Factor = Present Value Cash Flow Annual cash flow Residual value Net present value Required Required B > A machine costs $410,000, has a $35,900 salvage value, is expected to last eight years, and will generate an after-tax income of $80,000 per year after straight-line depreciation (Round your answers to the nearest whole dollar.) Amount * PV Factor = Select Chart Present Value Cash Flow Annual cash flow Residual value Net present value