14 Problem 24-1A Computing payback period, accounting rate of return, and net present value LO P1, P2, P3 polnts 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 $495,000 cost with an expected four-year life and a $23,000 salvage value. All sales are for cash, and all costs are out-of-pocket, exrept for depreclation on the new machine Additional information inclurdes the following (PV of $1. FV of $1. PVA of S1, and FVA of S1 (Use appropriate factor(s) from the tebles provided.) Sepped $1,see,o00 Expected annual ales of new product Fxpected annual ensts of new product Hock nirect nateriale 445,an0 nirect labar dverhend (eluding straight -line depreciatian an new machine) Selling and aduinistrative xpenses Income taKE nirect lahar Agk 144,a0 sak Pint 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. 3. Compute this machine's ponyback periad, assuming that cash flows occur evenly throughout each year. 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year. 5. Compute the not present valuc for this machine using a discount rate of 7%, and assuming that cash flows occur at cach vear-end. Deterencen (FAvit Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below. Roquired 1 Roquired 2 Required 3 Roquired 4 Required Compute this machine's payback period, assuming that cash flows occur evenly throughout each yaar. Required 5 Required 1 Required 2 Required 3 Reguired 4 Payhack Paricod Compute straight-line depreciation for each year of this new machine's life. : Choose Numerutor: Chuuse Denominator: Puybuck Period Payback period Straight inc depreciation Required 4 Required 1 Required 2 Required 3 Required : Complete this question by entering your answers in the tabs below. Dotermine expoctod net Income and net cash flow for each year of this machine's lifc. Expected Net lIncome Required 1 Required 2 Reguired 3 Required 4 Required 5 RevanuS Compute this machine's accounting rate of return, assuming that income is carned evenly throughout cach year. Expensa Accounting Rate of Return Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting rate of return Required 1 Required 2 Required 3 Reured 4 Requited 5 Compute the net present value for this machine using a discount rate of 75% and assuming that cash flows occur at cach year-end. (Hint: Salvage value is a cash inflow at the end of the asset's ife.) (Da not raund intermediate calca.lations. Amounts to he deducted should be indicated by a minus sign.) Expected Net Cash Flow Chart ValuRk ara Rasad on: i- Amount x PV Factor Present Valuc Cash Flow Select Chart Annual cash flow RAsidual value Net present value ( Required 4 Requireds>