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a. A new operating system for an existing machine is expected to cost $837000 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 $837000 and have a useful life of six years. The system yields an incremental after tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $105,000 b. A machine costs $570,000, has a $58,000 salvage value, is expected to last eight years, and will generate an after-tax income of $155,000 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 S1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required Required B A new operating system for an existing machine is expected to cost $837,000 and have a useful life of six years. The system yields an incremental after tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $105,000. (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount * PV Factor - Present Value Annual cash flow Residual volo Not present value Repu Required B > Complete this question by entering your answers in the tabs below. Required Required B A machine costs $570,000, has a $58,000 salvage value, is expected to last eight years, and will generate an after-tax income of $155,000 per year after straight line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount X PV Factor - Present Value Annual cash flow Residual value Net present value

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