2.UU Saved 17 Compute the payback period for each of these two separate investments: 0.52 points a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation ebook Payback Period Hard Choose Numerator Choose Denominator: Payback Period Payback period References a. b