A: A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $280,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,600.

B: A machine costs $410,000, has a $33,500 salvage value, is expected to last eight years, and will generate an after-tax income of $86,000 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.

Required A: A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $280,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,600. (Round your answers to the nearest whole dollar.)

Required B: A machine costs $410,000, has a $33,500 salvage value, is expected to last eight years, and will generate an after-tax income of $86,000 per year after straight-line depreciation.