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a. A new operating system for an existing machine is expected to cost $730,000 and have a useful life of six years. The system ylelds

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a. A new operating system for an existing machine is expected to cost $730,000 and have a useful life of six years. The system ylelds an incremental after-tax income of $275,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $16,600 b. A machine costs $530,000, has a $29,900 salvage value, is expected to last eight years, and will generate an after-tax income of $88,000 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.S1. EV ot S1. PVA of S1, and EVAof S) (Use appropriate factorts) from the tobles provided,) Complete this question by entering your answers in the tabs below. Required A Required 8 Required A Required B A new operating system for an existing machine is expected to cost $730,000 and have a useful life of six years. The system yields an incremental after-tax income of $275,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $16,600. (Round your answers to the nearest whole dollar) ountx PV FactorPresent Value as 0 Residual value Complete this question by entering your answers in the t abs below Required ARequired B A machine costs $530,000, has a $29,900 salvage value, is expected to last eight years, and will generate an after-tax income of $88,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Annual cash flow Residual value Amountx PV Factor Net present value

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