a. A new operating system for an existing machine is expected to cost $720,000 and have a useful life of six years. The system yields an incremental after-tax income of $255,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $18,000. b. A machine costs $400,000, has a $29,600 salvage value, is expected to last eight years, and will generate an after tax income of $84,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1. FV or $1. PVA of S1 and FVA of S1) (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 $220,000 and ba s er e six years. The system yields an incremental after-tax income of $255,000 each year after deducting stratahtline depreciation de salvage value of the system is $18,000. (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. A new operating system for an existing machine is expected to cost $720,000 and have a useful life of six years. The system yields an incremental after-tax income of $255,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $18,000. b. A machine costs $400,000, has a $29,600 salvage value, is expected to last eight years, and will generate an after-tax income of $84,000 per year after straight-line depreciation Assume the company requires a 10% rate of return 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 machine costs $400,000, has a $29,600 salvage value, is expected to last eight years, and will generate an after-tax Income of $84,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar) Select Chart Amount P V Factor Present Value Cash Flow Annual cash flow Residual value Net present value