a. A new operating system for an existing machine is expected to cost $590,000 and have a useful life of six years. The system yields an incremental after tax income of $270,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $19,200 b. A machine costs $450,000, has a $37.400 salvage value is expected to last eight years, and will generate an after-tax income of $62,000 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 $11) (Use appropriate factor(s) from the tables provided.) Answer is not complete. 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 $590,000 and have a useful life of six years. The system yields an incremental after-tax income of $270,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $19,200. (Round your answers to the nearest whole dollar) Amount X PV Factor Desene NARIAI Cash Flow Annual cash flow Residual value Select Chart Present Value of an Annuity of 11 Present Value of 1 $ 380,133. X F $ 10 0 Present value of cash inflows Immediate cash outflows Nel present value Required B Prey 1 of 12 Next > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A h Required B A machine costs $450,000, has a $37,400 salvage value, is expected to last eight years, and will generate an after-tax income of $62,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount PV Factor Present Value Present Value of an Annuity of 1 $ 0 Annual cash flow Residual value Present Value of 1 = 0 Present value of cash inflows Immediate cash outflows Net present value