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#3 please do both requirements Check my work a. A new operating system for an existing machine is expected to cost $520,000 and have a
#3 please do both requirements
Check my work 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 the system is $10,000. 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. 0.85 points Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) eBook Hint Complete this question by entering your answers in the tabs below. Print References Required A Required B 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 the system is $10,000. (Round your answers to the nearest whole dollar.) Select Chart Amount > PV Factor = Present Value Cash Flow Annual cash flow Residual value Net present value References Required A Required 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. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount > PV Factor = Present Value Annual cash flow Residual value Net present valueStep by Step Solution
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