5 Factor Company is planning to add a new product to its Ine. To manufacture this product, the company needs to buy a new machine at . $499,000 cost with an expected four year life and a $11,000 salvage value. Al sales are for cash and all costs are out-of-pocket except for depreciation on the new machine. Additional information includes the following ev. $1. El of $1. PVA of Si. and EVA of $]) (Use appropriate factor(s) from the tables provided.) 16.66 Don 51,898,990 Expected annual sales of new product Expected annual costs of new product Direct materials Direct labor Overhead (excluding straight line depreciation on ne machine) Selling and finistrative penses Income taxes 405,000 678.000 335,00 172.000 Bax Required: 1. Compute straight-line depreciation for each year of this new machine's life 2. Determine expected net income and ret cash flow for each year of this machine's life 3. Compute this machines payback period, assuming that cash flows occur evenly throughout each year 4. Compute this machines accounting rate of return, assuming that income is earned evenly throughout each year. 5. Compute the net present value for this machine using a discount rate of 8% and assuming that cash flows occur at each year-end Hint 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. Required: Required 2 Required Required 4 Required Compute straight-line depreciation for each year of this new machine's life. Steine depresion Required 2 > Required 1 Required 2 Required Required 4 Required 5 5 Determine expected net income and net cash flow for each year of this machine's life. Expected Not Income Revenues 16.66 points Expenses Book 0 Expected Net Cash Flow 0 xam 4 Review Saved Help SE 5 Expected annual costs of new product Direct materials Direct labor Overhead (excluding straight-line depreciation on new machine) Selling and administrative expenses Income taxes 495,000 678,000 335,000 172,000 16 66 points Required: 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. Compute this machine's payback period, 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 net present value for this machine using a discount rate of 8% and assuming that cash flows occur at each year end. (Hint Salvage value is a cash intlow at the end of the asset's life) BOR Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute this machine's Dayback period, assuming that cash flows occur evenly throughout each year Payback Period Choose Denominator Choose Numerator: Payback Period Payback period

BOOKS U Home Chegg.com Exam 4 Review Saved 5 Expected annual costs of new product Direct materials Direct labor Overhead (excluding straight-line depreciation on new machine) Selling and administrative expenses Income taxes 495, eee 678,000 335,eee 172.000 3ex 16.66 points Required: 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. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year 4. Compute this machine's accounting rate of return, assuming that income is eamed evenly throughout each year 5. Compute the net present value for this machine using a discount rate of 8% and assuming that cash flows occur at each year-end (Hint Salvage value is a cash inflow at the end of the asset's life.) . Complete this question by entering your swers in the tabs below Required 1 Required 2 Required Required 4 Required Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year Accounting Rate of Return Choose Denominator Choose Numerator Accounting Rate of Return Accounting rate of retum (Required 3 Required 5 > Mr Prey 5 of 6 Next > H 07 5 Direct materials Direct Labor Overhead (excluding straight-line depreciation on new machine) Selling and administrative expenses Income taxes 495,000 678,000 335,800 172,000 16.66 DO Required: 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. Compute this machine's payback period, 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 net present value for this machine using a discount rate of 8% and assuming that cash flows occur at each year end (Hint 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. Required Required 2 Required 3 Required 4 Required 5 Compute the net present value for this machine using a discount rate of 8% and assuming that cash flows occur at each year-end. Hint: Salvage value is a cash inflow at the end of the asset's life. (Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign.) Chart Values areBased ca Select Chart Amount PV Facto: Cash Flow Annual cash flow Residual value Prescot Value 5 0 0 Ner present value