a. A new operating system for an existing machine is expected to cost $667,000 and have a useful life of six years. The system yields an incremental after-tax income of $195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $55,000. b. A machine costs $470,000, has a $38,000 salvage value, is expected to last eight years, and will generate an after- tax income of $105,000 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.) Complete this question by entering your answers in the tabs below. Required Required A B A new operating system for an existing machine is expected to cost $667,000 and have a useful life of six years. The system yields an incremental after-tax income of $195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $55,000. (Round your answers to the nearest whole dollar.) Show less PV Present Cash Flow Select Chart Amount Factor Value Annual cash Present Value of an $ 297,000 x $ 0 flow Annuity of 1 Residual value Present Value of 1 $ 55,000 X 0 Present value of cash inflows Immediate cash outflows 667,000 Net present value = Required Required A B A machine costs $470,000, has a $38,000 salvage value, is expected to last eight years, and will generate an after-tax income of $105,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Show less Cash Flow Select Chart PV Amount X Present Factor Value Annual cash Present Value of an $ 159,000 x $ 0 flow Annuity of 1 Residual value Present Value of 1 $ 38,000 x 0 Present value of cash inflows Immediate cash outflows 470,000 Net present value