Problem 26-1A Payback period, net present value, and net cash flow calculation P1 OP3 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 $480,000 cost with an expected fouryear life and a $20,000 salvage value. Additional annual information for this new product line follows $1,840,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling general, and administrative expenses 1.488,000 115.000 183,100 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%