Exercise 24.6 Net present value LO P3 0. A new operating system for an existing machine is expected to cost $854,000 and have a useful life of six years. The system yields on Incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $110,000. b. A machine costs $580,000, hos a $60,000 salvage volue, is expected to last eight years, and will generate an after tax Income of $160,000 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 $1. FV of $1, PVA of 51, and EVA of $ (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 $8$4,000 and have a useful life of six years. The system ylolds an incremental after tax income of $250,000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $110,000. (Round your answers to the nearest whole dollar) Solect Chart Amount X PV Fagar Present Value Cash Flow Annual cash flow Residual value Nel present value Required A Required B > Exercise 24.6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $854,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $110,000. b. A machine costs $580,000, has a $60,000 salvage volue, is expected to last eight years, and will generate an after-tax income of $160,000 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 51. EV Of $1. PVA of $1, and FVA 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 $580,000, has a $60,000 salvage value, is expected to last eight years, and will generate an after-tax Income of $160,000 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 onshow Residual value Not present value (Required A Required