Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $769,000 and have a useful life of six years. The system yields an incremental after-tax income of $225,000 each year after deducting its straight-line depreciation. The predicted salvage value of b. A machine costs $530,000, has a $50,000 salvage value, is expected to last eight years, and will generate an after-tax income of $135,000 per year after straight-line depreciation Assume the company requires a 13% rate of return on its investments. Compute the net present value of each potential investment PV of $1. EY of $1. PVA 0:51. and FVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. 1 Retired A Required B cos A new operating system for an existing machine is expected to cont 5769,000 and have a useful life of six years. The system yields an incremental after tax income of $225,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $85,000. (Round your answers to the nearest whole dollar) Select Chart Amount * PV Factor Present Value Cash Flow Annual cash flow Residual valon Not preserve Required A Required B A machine costs $530,000, has a $50,000 salvage value, is expected to last eight years, and will generate an after-tax income of $135,000 per year after straight-line depreciation. (Round your answers to the nearest whole doltar.) Cash Flow Select Chart Amount * PV Factor Present Value Annual cash flow Residual value Net prosont value Engured A