9. 075 points value Problem 24-1A 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 company needs to buy a new machine at a $515,000 cost with an expected four-year life and a $15,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following. (FV of $1. PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) pected annual sales of new product $1,990 000 Expected annual costs of new product 460,000 672,000 straight-line depreciation on new machine) 337 000 153,000 Direct materials Direct labor Income taxes 38% 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 1-0 Type here to search