Question: 4. a. A new operating system for an existing machine is expected to cost $710,000 and have a useful life of six years. The system

 4. a. A new operating system for an existing machine is
expected to cost $710,000 and have a useful life of six years.

4. a. A new operating system for an existing machine is expected to cost $710,000 and have a useful life of six years. The system ylelds an incremental after-tax income of $210,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400. b. A machine costs $540,000 has a $29,600 salvage value, is expected to last eight years, and will generate an after-tax income of $68,000 per year after straight-line depreciation Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment (Py of $1. Fof St. PVA of S1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) 22 points 00:40:25 Complete this question by entering your answers in the tabs below. Required A Required B A new operating system for an existing machine is expected to cost $710,000 and have a useful life of six years. The system yields an incremental after-tax income of $210,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400. (Round your answers to the nearest whole dollar) Select Chart Amount X Factor Cash Flow Annual cash flow Residual value Present Value $ 0 0 Net present value RA Required B > 30 Zhao Co. has fixed costs of $319,200. Its single product sells for $169 per unit, and variable costs are $113 per unit. Compute the level of sales in units needed to produce a target (pretax) Income of $112,000. Una 12 points 00:03

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