a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental atter-tax Income of $150,000 each year after deducting its straight-line depreciation. The predicted salvege value of the system is $25,400 b. A machine costs $580,000 has a $39.500 selvage value, is expected to last eight years, and will generate an after-tax income of $76.000 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 Si, and FVA of 51) (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 $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $160,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is 525,400. (Round your answers to the nearest whole dollar) Select Chart Amount PV Foto Present Value Cash Flow Annual cash flow Residual value UrWivu EU CELULIJMUIMILLIMIT TIL MILUILLUSU ULICI MILLE MAI the system is $25,400. b. A machine costs $580,000, has a $39,500 salvage value is expected to last eight years, and will generate an after-tax in $76,000 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 inve (PV of $1. FV of S1 PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) ok Complete this question by entering your answers in the tabs below. ht Required A Required B ences A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $160,000 onch year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,400. (Round your answers to the nearest whole dollar.) Select Chart Amount X PV Factor Present Value Cash Flow Annual cash flow Residual value Net present value ROMA Required > MALE MA www.wowWOUCH Wyrwy w W the system is $25,400. b. A machine costs $580,000, has a $39.500 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 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 S1, FV of S1, PVA of S1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. 1 Required Requrbate A machine costa $500,000, has a $39,500 salvage value, is expected to last eight years, and will generate an after-tax Income of $76,000 per year after straight-line depreciation. (Round your answers to the nearest Whole dollar) Cash Flow Select Chart Amount PV Factor Present Value Amal cash flow Residual value Net present value
