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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-tex 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 selvage 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 12% rate of return on its investments Compute the net present value of each potential investment (PV of $1. FV SI PVA O $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Answer is not complete Complete this question by entering your answers in the tabs below. Required Required A now 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) 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 ylelds 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) Cash Flow Select Chart Amount PV Present Factor Value Annual cash flow Present Value of an Annuity of 1 $ 340.933 4 1114 $ 1.401,712 Residual value Present Value of 1 24.400 X X 0.5066 12.381 Present value of cash intlows $ 1.414 073 Immediate cash outflows (750,000) Net present value S 564077 FARMACIA Required B > Required A Required A machine costs $520,000, has a $18,000 salvage value, is expected to last eight years, and will generate an after tax income of $130,000 per year after straight line depreciation. (Round your answers to the Learest whole dollar) Cash Flow Present Select Chart Amount Factor Value Annual cash flow Residual value 0 PV X $ 0 Net present value Required A

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