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a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields

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a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $29,600 b. A machine costs $590,000, has a $24,200 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 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 machine costs $590,000, has a $24,200 salvage value, is expected to last eight years, and will generate an after-tax" ncome of $86,000.per year after straight line depreciation. Round your answers to the nearest whole dollar) Cash Flow Annual cash flow Residual value Select Chart Amount x PV Factor Present Value Net present value Required A Le

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