a. A new operating system for an existing machine is expected to cost $633,000 and have a useful life of six years. The system yields on incremental after-tax income of $185,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $45,000 b. A machine costs $450,000, has a $34,000 salvage value, is expected to last eight years, and will generate an after-tax income of $95,000 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. EV of $1. PVA $1, and EVA of $11 (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 $633,000 and have a useful life of six years. The system yields an incremental after-tax income of $185,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $45,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chan Amount * PV Factor Present Value Annual cash flow $ 0 Residual value 0 Net present value Required A Required B> a. A new operating system for an existing machine is expected to cost $633,000 and have a useful life of six years. The system yields an incremental after-tax income of $185,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $45,000. b. A machine costs $450,000, has a $34,000 salvage value, is expected to last eight years, and will generate an after-tax income of $95,000 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 A Required B A machine costs $450,000, has a $34,000 salvage value, is expected to last eight years, and will generate an after-tax income of $95,000 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 an Annulty of 1 $ Residual value Present Value of 1 Present value of cash inflows 0 0 Net present value