a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight line depreciation, Assume the company regulres a 10% rate of return on its investments. Compute the net present value of each potential investment PV of $1. V of S1, PVA of $1, and EVAN1) (Use appropriate foctor(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 $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $10,000. (Round your answers to the nearest whole dollar) Cash Flow Annual cash flow Residunt value Amount $ 235,000 x PV Factor - Present Value S 0 0 Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Not prosent value Required B > Exercise 11-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system ylelds an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000, b. A machine costs $380,000, has a $20,000 salvage value is expected to last eight years, and will generate an after-tax income of $60,000 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. S. PVA of $1 and EVA ES1) (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 $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax Income of $60,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar) Select Chart Amount Cash Flow Annual cash flow Residual value * PV Factor - Present Value 5 0 0 Net present value Required A