a. A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000. b. A machine costs $560,000, has a $56,000 salvage value, is expected to last eight years, and will generate an after-tax Income of $150,000 per year after straight-line depreciation Assume the company requires a 10% rate of retum 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.) Complete this question by entering your answers in the tabs below. Required A Required B A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount * PV Factor - Present Value Annual cash flow Residual value Net present value Required A Required B > Required A Required B A machine costs $560,000, has a $55,000 salvage value, is expected to last eight years, and will generate an after-tax income of $150,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Amount * PV Factor Present Value Annual cash flow Residual value Cash Flow Select Chart Net present value