e. A new operating system for an existing machine is expected to cost $760,000 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 $23.000. b. A machine costs $540,000, has a $21,800 salvage value, is expected to last eight years, and will generate an after-tax income of $62,000 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. Py of S1,EV OF $1. PVA Of S1 and EVA OLSD (Use appropriate foctor(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 $760,000 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 $23,000. (Round your answers to the nearest whole dollar.) Select Chart Cash Flow Annual cash flow Residual value Amount x PV Factor - Present Value Net present value Required A Required B > JETUUU UNTUyL TUUL, I capelle $62,000 per year after straight-line depreciation. uldsteynt years, and will generate an alter Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potentia (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $540,000, has a $21,800 salvage value, is expected to last eight years, and will generate an after-tax income of $62,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Amount x PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value