. A new operating system for an existing machine is expected to cost $250,000 and have a useful life of four years . The system yields an incremental after-tax income of \$72.115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $210,000has a $ 13,000 salvage value, expected to last eight years, and will generate an after- tax income of $39,000 per year after straight-line depreciation .

Check my work Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $250,000 and have a useful life of four years. The system yields an incremental after-tax income of $72,115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $210,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after-tax income of $39,000 per year after straight-line depreciation. Payback Period Choose 1 Denominator: Choose Numerator: Payback Period Payback period