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a. A new operating system for an existing machine is expected to cost $599,000 and have a useful life of six years. The system ylelds

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a. A new operating system for an existing machine is expected to cost $599,000 and have a useful life of six years. The system ylelds an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $35,000 b. A machine costs $430,000, has a $30,000 salvage value is expected to last eight years, and will generate an after-tax income of $85,000 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 $599,000 and have a useful life of six years. The system yields an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $35,000. (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 Required 8 > a. A new operating system for an existing machine is expected to cost $599,000 and have a useful life of six years. The system yields an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $35,000 b. A machine costs $430.000, has a $30,000 salvage value, is expected to last eight years, and wil generate an after-tax income of $85,000 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 PVS1.EV Of S1, PVA.SI, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required Required B A machine costs $430,000, hos a $30,000 salvage value, is expected to last eight years, and will generate an after-tax income of $85,000 per year after straight line depreciation (Round your answers to the nearest whole collar) Cash Flow Select Chart Amount * PV Factor Present Value Annual cash flow Residual value Net present value Hequired A

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