Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $185,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $17,600. b. A machine costs $560,000, has a $26,300 salvage value, is expected to last eight years, and will generate an after- tax income of $88,000 per year after straight-line depreciation Assume the company requires a 12% rate of return on its investments, Compute the net present value of each potential Investment. (PV of S1.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 new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $185,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $17,600. (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount * PV Factor Present Value Annual cash flow Residual value Net present value Required) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $560,000, has a $26,300 salvage value, is expected to last eight years, and will generate an after-tax income of $88,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount X PV Factor Present Value Annual cash flow Residual value Net present value Required A