Problem 24-1A (Algo) Payback period, net present value, and net cash flow calculation

Problem 24-1A (Algo) Payback period, net present value, and net cash flow calculation LO P1, P3 Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $515.000 cost with an expected four-year life and a $19,000 salvage value. Additional annual information for this new product line follows. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) $ 1,940,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses 1,493,800 124,000 174,000 es Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Required 1 Required 2 Required 3 Determine income and net cash flow for each year of this machine's life. Expected Income k Revenues t Expenses nces Expected Net Cash Flow Nel cash flow 5 Required 1 Required 2 Required 3 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Payback Period Numerator: 1 Denominator: 1 Payback Period Required 1 Required 2 Required 3 Compute net present value for this machine using a discount rate of 7%. (Do not round intermediate calculations. Round your p factor to 4 decimals and final answers to the nearest whole dollar.) Chart Values are Based on: n = 1 = % Cash Flow Select Chart Amount PV Factor Present Value Annual cash flow Salvage value = = Nel present value =