a. A new operating system for an existing machine is expected to cost $854,000 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 $110,000. b. A machine costs $580,000, has a $60,000 salvage value, is expected to last eight years, and will generate an after-tax income of $160,000 per year after straight-line depreciation. OK Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. Int (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) int ences 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 $854,000 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 $110,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount x PV Factor = Present Value Annual cash flow + S Residual value Net present value