a. A new operating system for an existing machine is expected to cost $790,000 and have a useful life of six years. The system yields an incremental after-tax income of $190,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $21,000. b. A machine costs $380,000, has a $31,400 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 per year after straight-line depreciation. Assume the company requires a 12% 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 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 $790,000 and have a useful life of six years. The system yields an incremental after-tax income of $190,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $21,000. (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 4.1114) = $ $ 316,933 x 28,400 x Residual value Present Value of 1 0.5066 = 1,303,038 14,387 1,317,425 (790,000) Present value of cash inflows Immediate cash outflows Net present value Required A Required B A machine costs $380,000, has a $31,400 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 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 II $ 0 Residual value = 0 Net present value