a. A new operating system for an existing machine is expected to cost $740,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,800. b. A machine costs $420,000, has a $35,300 salvage value, is expected to last eight years, and will generate an after- tax income of $66,000 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 Required A B A new operating system for an existing machine is expected to cost $740,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,800. (Round your answers to the nearest whole dollar.) Show less Cash Flow Select Chart Amount PV Present Factor Value Annual cash flow Residual value Net present value