Question: please assist i am stuck with the net present value Return to question 5 a. A new operating system for an existing machine is expected

Return to question 5 a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) eck my work mode: This shows what is correct Work you have O su dll Return to question Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Amount Cash Flow Annual cash flow Residual Present Value 560,175 105,000x PV Factor 5.3350 0.4665 $ Select Chart Present Value of an Annuity of 1 Present Value of 1 $ Present value of cash inflows Immediate cash outllows Net present value value 20,000 $ po 9,330 569,505 380,000 189,505 S Required A Required)
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