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a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of sh years. The system yeids

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a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of sh years. The system yeids an incremental after-tax income of $195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,200. b. A machine costs $540,000, has a $35,000 salvage value, is expected to last elght years, and will generate an after-tax income of $82,000 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 S1, EV of S1, PVA of S1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. A new operating system for an existing machine is expected to cost $630,000 and have a uselut life of six years. The system yields an incremental after-tax income of $195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,200. (Round vour answers to the nearest whole dollar.)

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