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a. A new operating system for an existing machine is expected to cost $564,000 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 $564,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,000 b. A machine costs $440,000, has a $29,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 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 (P 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 $564,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,000. (Round your answers to the nearest whole dollar.) 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 $564,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,000. (Round your answers to the nearest whole dollar.) Select Chart Amount X PV Factor Cash Flow Annual cash flow Residual value Present Value $ 0 0 Net present value Retired Required B > Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $440,000, has a $29,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar). * Select Chart Amount X PV Factor Cash Flow Annual cash flow Residual value Present Value $ 0 0 Net present value

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