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 after-tax income of $160,000 each year after deducting its straight-line depreciation. The predicted selvage value of 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. Fred 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) Cash Flow Select Chart Annual cash flow Residual value Amount * PV Factor Present Value $ 0 0 Assume the company requires a 10% rate or return on its investments. Compute the net present value of eacn potential in PV of $1. FV of $1. PVA of $1, and FVA 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 $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 $25,400. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart * PV Factor Present Value Amount Annual cash flow Residual value $ 0 0 Net present value MGA Required B >