Question: a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields

 a. A new operating system for an existing machine is expected
to cost $630,000 and have a useful life of six years. The

a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $260,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $29,800 b. A machine costs $580,000, has a $27,800 salvage value, is expected to last eight years, and will generate an after-tax income of $66,000 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. Required* Required B A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $260,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $29,800. (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 Roqulod Required B > a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $29,800. b. A machine costs $580,000, has a $27,800 salvage value, is expected to last eight years, and will generate an after-tax income of $66,000 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 S1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $580,000, has a $27,800 salvage value, is expected to last eight years, and will generate an after-tax income of $66,000 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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