Question: What am I missing? A new operating system for an existing machine is expected to cost $800,000 and have a useful life of six years.

What am I missing?

A new operating system for an existing machine is expected to cost $800,000 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 $29,200.

* Answer is not complete. 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 $800,000 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 $29,200. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount X PV Present Factor Value Annual cash Present Value of an Annuity of X = flow S 353,466 4. 1114 5 1,453,240 Residual value Present Value of 1 29,200 X 0.5066 = 14,793 Present value of cash inflows 5 1,468,033 Immediate cash outflows 800,000 Net present value 668,033 (x

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