A new operating system for an existing machine is expected to cost $710,000 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 $29,600. A machine costs $470,000, has a $30,200 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 per year after straight-line depreciation.

these are discount rate top to bottom from periods 1-40 for 12 percent

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 $710,000 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 $29,600. (Round your answers to the nearest whole dollar.) Select Chart Amount x PV Factor = Present Value Cash Flow Annual cash flow $ Residual value = 0 Net present value 12% 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0588 0.0334 0.0189 0.0107