Check my work Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $170,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. b. A machine costs $470,000, has a $35,000 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of S1, FV of $1. PVA of $1, and EVA of $1) (Use appropriate factorfs) 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 $770,000 and have a useful life of six years. The system yields an incremental after tax income of $170,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. (Round your answers to the nearest whole dollar.) ash Flow Select Chart Amount PV FactorPresent Value Annual cash flow Residual value Net present value Required B > Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $170,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. b. A machine costs $470,000, has a $35,000 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of S1. PVA of $1, and FVA of S) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below Required ARequired B A machine costs $470 ,000,has a $35,000 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight Cash FlowSelect Chart Annual cash flow Residual value Amount PV Factor Present Value Net present value Check my work Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $170,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. b. A machine costs $470,000, has a $35,000 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of S1, FV of $1. PVA of $1, and EVA of $1) (Use appropriate factorfs) 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 $770,000 and have a useful life of six years. The system yields an incremental after tax income of $170,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. (Round your answers to the nearest whole dollar.) ash Flow Select Chart Amount PV FactorPresent Value Annual cash flow Residual value Net present value Required B > Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $170,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,600. b. A machine costs $470,000, has a $35,000 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of S1. PVA of $1, and FVA of S) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below Required ARequired B A machine costs $470 ,000,has a $35,000 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight Cash FlowSelect Chart Annual cash flow Residual value Amount PV Factor Present Value Net present value