Chapter 24 . Practice Trple X syndrome common Phrasesc LiveScience Scene kan peud Hor 1Paari -YouTube Help Save & En mework the company needs to buy a new machine at Factor Company is planning to add a new product to its line. To manufacture this product, a $515,000 cost with an expected four-year life and a $11000 salvage value. All sales are for cash and ailcosts are out-of-pocket except for depreciation on the new machine. Additional information indludes the following (PY ot $1, EV of S1. PVA ot S1. and EYA of (Use appropriate fector(s) from the tables provided.) $1,860,0ee Expected annual sales of new product Expected annual costs of new product 488,000 672,000 37,000 177,090 irect asteriais Direct labor Overhead (excluding straight-line depreclation on new machine) Selling and administrative expenses Required: 1. Compute straight-ine depreciation for each year of this new machine's ife 2. Determine expected net income and net cash flow for each year of this machine's life. 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year A. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year s, compute "he nel present value for this machine using a discount rate of 7% and assuming that cash novs occur at each year end Hint Salvage value is a cash infiow at the end of the asset's life) Commplete this qaestion by entering your answers in the tabs below Prey 3or4 EE Next > 3 5 6 8 W E