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 $230,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $16,000. b. A machine costs $470,000, has a $33,200 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 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 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 $230,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $16,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount * PV Factor Present Value Annual cash flow Future Value of 1 0 Residual value Future Value of 1 0 Immediate cash outflows Immediate cash outflows Net present value Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B 0 A machine costs $470,000, has a $33,200 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 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 Future Value of 1 $ Residual value Future Value of 1 0 Immediate cash outflows Immediate cash outflows Net present value