a. A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $20.400. b. A machine costs $480,000, has a $22,700 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 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 S1. FV of $1. PVA of $1, and FVA of $.1) (Use appropriate factor(s) from the tables provided.) K MRDLY RECYM ULRI, VA DE 31) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B x A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $20,400. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount PV Factor Present Value Annual cash flow Present Value of an Annuity of 1 $ Residual value Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value 0 0 Required A Required B > diue b. A machine costs $480,000, has a $22,700 salvage value, is expected to last eight years, and will generate an after-tax income of $72.000 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.) ok Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $480,000, has a $22,700 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar) LE Amount X PV Foctor Present Value 0 0 Cash Tow Select Chart Annual cash flow Present Value of an Annuity of 1 Residual value Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value