a) A new operating system for an existing machine is expected to cost $690,000 and have a useful life of six years. The system yields an incremental after-tax income of $285,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400.

b) A machine costs $450,000, has a $21,500 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 per year after straight-line depreciation.

Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1,FV of $1,PVA of $1andFVA of $1)(Use appropriate factor(s) from the tables provided.)

Completeliswestionbyenterhgwurminlemsbdw. A new operating system for an existing machine is expected to cost $690,000 and have a useful life of six years. The system yields an incremental after-tax income of $285,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400. (Round your answers to the nearest whole dollar.) Annual cash flow Required B ) Residual value Net present value ReQUiI-Ed A A machine costs $450,000, has a $21,500 salvage value, is expected to last eight years, and wili generate an altertax income of $76,000 per year after straight-line depreciation. (Round your anmers to the nearest whole dollar.) Annual cash ow Residual value Net present value