Question: A new operating system for an exusting machine is expected to cost $610,000 and have a useful life of six years. Exercise 11-6 Net present


Exercise 11-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost S610000 and have a use b. A machine costs Assume the company requires a 126 six years. The system yields 380.000, has a $29,300 salvage value, s expected to last eight years, and will generate an after-tax income of rate of return on its investments Compute the net present value of each potential investment an incremental after-tax income the system is $28,000 the system is $2800225000 each yar after deducting its straight, ine depreciation. The predicted salvage value $74,000 per year after straight-line depreciation (PV of S1. EY ot S1. PVA.of S1, and EVA.of SD (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 $610,000 and have a useful life of six years. The system ds an incremental after-tax income of $225,000 each year after deducting its straight-line depreciation. The predicted yiel salvage value of the system is $28,000. (Round your ariewern to the nearest whole doillar.) PV Factor Present Value h FlowSelect Chart Annual cash flow Amount 1 | x Factor Required ARequired B A new operating system for an existing machine is expected to cost $610,000 and have a useful life of six years. The system yields an incremental after-tax income of $225,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $28,000. (Round your answers to the nearest whole dollar.) Cash Flow Annual cash flow Residual value Amount P Factor Present Value Select Chart Net present value Required B Required A Require B machine costs $380,000, has a $29,300 salvage value, is expected to last eight years, and will generate an after-tax ncome of $74,000 per year after straight-line depreciation. (Round your answers to the nearest whole dolan.) ash Flow nnual cash flow Residual value Select Chart Amount x PV FactorPresent Value Net present value
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