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1. Compute straight line depreciation for each year of this new machine's life.2. Determine expected net income and net cash flow for each year of

1. Compute straight line depreciation for each year of this new machine's life.2. Determine expected net income and net cash flow for each year of this machine's life.3. Computer machine's payback period, assuming that cash flows occur evenly throughout each year.4. Computer machine's accounting rate of return, assuming that income is earned evenly throughout each year.

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Check my wo Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $490,000 cost with an expected four-year life and a $16,900 salvage value. All sales are for cash, and all costs are out of pocket except for depreciation on the new machine. Additional information includes the following. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Expected annual sales of new product $1,960,000 Expected annual costs of new product Direct materials 465,000 Direct labor 677,000 Overhead excluding straight-line depreciation on 336,000 new machine Selling and administrative expenses 167,000 Income taxes 36%

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