a. A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax Income of $240,000 each year after deducting Its straight-line depreciation. The predicted salvage value of the system Is $100,000. b. A machine costs $560,000, has a $56,000 salvage value, is expected to last eight years, and will generate an after- tax Income of $150,000 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 EVA 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 A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount X PV Factor = Present Value Annual cash flow Present Value of an Annuity of 1 S Residual value Present Value of 1 0 Present value of cash inflows mmediate cash outflows Net present value a. A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax Income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000. b. A machine costs $560,000, has a $56,000 salvage value, Is expected to last eight years, and will generate an after- tax Income of $150,000 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 EVA 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 A machine costs $560,000, has a $56,000 salvage value, is expected to last eight years, and will generate an after-tax income of $150,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount * PV Factor = Present Value Annual cash flow Present Value of an Annuity of 1 S Residual value Present Value of 1 0 Present value of cash inflows Immediate cash outflows Net present value