Question: Seved Help S: Chapter 24 Assignment 3 1 a. A new operating system for an existing machine is expected to cost $633,000 and have a
Seved Help S: Chapter 24 Assignment 3 1 a. A new operating system for an existing machine is expected to cost $633,000 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 $45,000 b. A machine costs $450,000, has a $34,000 salvage value, is expected to last eight years, and will generate an after-tax income of $95,000 per year after straight-line depreciation polis eBook Assume the company requires a 13% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1. FV of S1, PVA of S1, and EVA of $1 (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required a Required Pint o A new operating system for an existing machine is expected to cost $633,000 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 $45,000. (Round your answers to the nearest whole dollar) References Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Residual Nel presenta
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