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a. A new operating system for an existing machine is expected to cost $752,000 and have a useful life of six years. The system yields

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a. A new operating system for an existing machine is expected to cost $752,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $80,000 b. A machine costs $520,000, has a $48.000 salvage value is expected to tast eight years, and will generate an after-tax income of $130,000 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 (PVOL$1. EV SI. PVA OLS1, and EVA 1 S1) (Use appropriate foctoris) 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 $752,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $80,000. (Round your answers to the nearest whole dollar) Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value Required Required) o. A new operating system for an existing machine is expected to cost $752.000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $80,000 b. A machine costs $520,000, has a $48.000 salvage value, is expected to last eight years, and will generate an after-tax income of $130,000 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. EVOSI. PVA of S1, and EVA of $1) (Use oppropriate foctor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $520,000, has a 548,000 salvage value is expected to last eight years, and will generate an alter-tax Income of $130,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar) Select Chart Amount X PV Factor Present Value Cash Flow Annual cash flow Residual value Not present value

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