Question: A net operating system for an existing machine is expected to cost $660 0DO and have a useful life of six years . The system

 A net operating system for an existing machine is expected to

A net operating system for an existing machine is expected to cost $660 0DO and have a useful life of six years . The system yields an incremental after tax income of 5 195 , 100 each year after deducting its straight line depreciation The predicted sale agevalue of the system i S18 500 . A machine costs $6 40 100 , has a $3 600 sal arevalue is expected to last eight years , and will generate General " after tax income of 590 Coo per year after straight line depreciation Assume the company reg pany requires a 120% rate of return on its investments . C ments . Compute the net present value of each potential investment . IFVorst , FV ofST FVorst PVAOfST and EVARIST The appropriate factor ( s ) from the tables provider Complete this question by entering your answers in the tabs below Complete this question b " by entering your answers in the tabs below Required A Required B new operating perating system for an existing machine is expected to cost $650 090 and have a useful life of six years . The system yields an incremental after - tax income of $ 195 090 eat year after deducting its straight - line depreciation . The predicted salvage value of the system LIFTING is $18 500 . I Round our answers to the nearest whole dollar . ) - Cash Flow Select Chart Amoun * / PV Factor Presen Value Annual cash Residual value Net present value

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