a. A new operating system for an existing machine is expected to cost $837,000 and have a useful life of six years. The system yields an incremental aftertax income of $245,000 each year after deducting its straightline depreciation. The predicted salvage value of the system is $105,000. b. A machine costs $570,000, has a $58,000 salvage value, is expected to last eight years, and will generate an aftertax income of $155,000 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.) 9 Answer is not complete. 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 $837,000 and have a useful life of six years. The system yields an incremental after-tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $105,000. (Round your answers to the nearest whole dollar.) Annual cash ow Future Value of 1 9 384,500 0 $ 1,674,613 Residual value Future Value of 1 o $ 105,000 9 x 0.5645 9 = 59,273 Immediate cash outows o $ 1,733,886 Present value of cash inows o Net present value RequiredA RequiredB A machine costs $570,000, has a $58,000 salvage value, is expected to last eight years, and will generate an aftertax income of $155,000 per year after straightline depreciation. (Round your answers to the nearest whole dollar.) Annual cash ow u_u ___u Immediate cash outows gm 1 234 078 Net present value 570 000 0 Net present value $ 664,078 6