a. A new operating system for an existing machine is expected to cost $660.000 and have a useful life of six years. The system yields an incremental after-tax income of $265,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $27800. b. A machine costs $400.000, has a $24,500 salvage value, is expected to last eight years, and will generate an after-tax income of $78,000 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 of $1, PVA of $1. and FVA of $1 (Use approprlete factor(s) from the tables provlded.) 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 $660,000 and have a useful life of six years. The system yields an incremental after-tax income of $265,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $27,800. (Round your answers to the nearest whole dollar.) Amount PV Factor Present Value Cash Flow Annual cash flow Residual value Select Chart Net present value Required A Required B a. A new operating system for an existing machine is expected to cost $660,000 and have a useful life of six years. The system yields an incremental after-tax income of $265,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $27,800. b. A machine costs $400,000, has a $24,500 salvage value, is expected to last eight years, and will generate an after-tax income of $78,000 per year after straight-line depreciation. Assume the company requires a 12% rate of return on its investments. Com pute the net present value of each potential investment. PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use approprlate factor(s) from the tables provlded.) Complete this question by entering your answers in the tabs below Required ARequired B A machine costs $400,000, has a $24,500 salvage value, is expected to last eight years, and will generate an after-tax income of $78,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Annual cash fow Residual value Select Chart Amount | x | PV Factor | | Present Value Net present value Required A