required 1 and required 2

Exercise 25-6 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 $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $18,600. b. A machine costs $390,000, has a $24,800 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 10% rate of return on its investments. Compute the net present value of each potential investment. Complete this question by entering your answers in the tabs below A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system x income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $18,600. (Round your answers to the nearest whole dollar.) PV Factor Present Value Select Chart Required B Exercise 25-6 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 an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvagev the system is $18,600 b. A machine costs $390,000, has a $24,800 salvage value, is expected to last eight years, and will generate an after-tax incom $88,000 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 investme (PV of $1, FV 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. A machine costs $390,000, has a $24,800 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.) Chart Amount PV FactorPresent Val Net Required A