a. A new operating system for an existing machine is expected to cost $803,000 and have a useful life of six years. The system yields an incremental after-tax income of $235,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $95,000. b. A machine costs $550,000, has a $54,000 salvage value, is expected to last eight years, and will generate an after-tax income of $145,000 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. EV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $550,000, has a $54,000 salvage value, is expected to last eight years, and will generate an after-tax income of $145,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount Annual cash flow Residual value Present Value of an Annuity of 1 $ 207.000 x PV Factor 5.1461 Present Value $ 1,065,243 Present Value of 1 S 54.000 x 0.4339 23.431 Present value of cash inflows $ 1,088,674 Net present value Save & Exi a. A new operating system for an existing machine is expected to cost $803,000 and have a useful life of six years. The system yields an incremental after-tax income of $235,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $95,000. b. A machine costs $550,000, has a $54,000 salvage value, is expected to last eight years, and will generate an after-tax income of $145,000 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. EV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) 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 $803,000 and have a useful life of six years. The system yields an incremental after-tax income of $235,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $95,000. (Round your answers to the nearest whole dollar.) Cash Flow Annual cash flow Select Chart Amount x PV Factor Residual value Present Value of an Annuity of 1 Present Value of 1 $ 353,000 x $ 95,000 x Present Value 42305 $ 1,493,367 0.5346- 50,787 Net present value $ 1,544,154 Net present value Required B>