11-1A Computation of payback period, accounting rate of return, and net present value LO P1, P2, P3 Factor Company is planning to add a new product to its line. To manufacture this product, the com new machine at a $495,000 cost with an expected four-year life and a $23,000 salvage value. All pany needs to buy a sales are for cash are out-of-pocket, except for depreciation on the new machine. Additional information includes the following. PV of S1, FV of S1. PVA of $1, and FVA of S) (Use appropriate factor(s) from the tables Expected annual sales of new produet Expected annual costs of new product $1,960,000 475,000 Direct materials Direct labor overhead (excluding straight-line depreciation on new machine) Selling and administrative expenses Income taxes 672,000 335,000 164,000 409 Required: 1. Compute straight-ine 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. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 4. Compute this machine's accounting 5. Compute the net present value for this machine using a discount rate each year-end. (Hint Salvage value is a cash inflow at the end of the asset's life) rate of return, assuming that income is earned evenly throughout each year. of 8%and assuming that cash flows occur at Complete this question by entering your answers in Required Required Required Required Required Determine expected net income and net cash flow for each year of this machine's life. the tabs below. Revenues Expenses Expected Net Cash Flow Required 1 Required 3 >