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a. A new operating system for an existing machine is expected to cost $790,000 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 $790,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 b. A machine costs $410,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 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 S1) (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 $790,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount * PV Factor - Present Value Annual cash flow = $ 0 Residual value 0 Net present value a. A new operating system for an existing machine is expected to cost $790,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $410,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $64.000 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 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 machine costs $410,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar) Amount X PV Factor Select Chart Present Value S 0 Cash Flow Annual cash flow Residual value 0 Net present value

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