Question: a. A new operating system for an existing machine is expected to cost $720,000 and have a useful life of six years. The system yields

 a. A new operating system for an existing machine is expected
to cost $720,000 and have a useful life of six years. The

a. A new operating system for an existing machine is expected to cost $720,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. b. A machine costs $390,000, has a $29,000 salvage value, is expected to last eight years, and will generate an after-tax income of $62,000 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.) Complete this question by entering your answers in the tabs below. ces Required A Required B A new operating system for an existing machine is expected to cost $720,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. (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 Required > Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $390,000, has a $29,000 salvage value, is expected to last eight years, and will generate an after-tax income of $62,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount * PV Factor Present Value Annual cash flow Residual value Net present value

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