a. A new operating system for an existing machine is expected to cost $620,000 and have a useful life of six years. The system yields an incremental after-tax income of $190,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,800. b. A machine costs $400,000, has a $23,600 salvage value, is expected to last eight years, and will generate an after-tax income of $82,000 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 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 $620,000 and have a useful life of six years. The system yields an incremental after-tax income of $190,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,800. (Round your answers to the nearest whole dollar.) Present Value Amount x PV Factor - 4.3553 - 26,800 x 0.5645 = $ 15.129 Cash Flow 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 Required B > a. A new operating system for an existing machine is expected to cost $620.000 and have a useful life of six years. The system yields an incremental after-tax income of $190,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26.800. b. A machine costs $400,000, has a $23,600 salvage value, is expected to last eight years, and will generate an after-tax income of $82,000 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 factors) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $400,000, has a $23,600 salvage value, is expected to last eight years, and will generate an after-tax income of $82,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.). Amount x Present Value Annual cash flow Residual value PV Factor = 533490 = 046650 - 1 Present Value of an Annuity of 1 Present Value of 1 1 Present value of cash inflows Immediate cash outflows Net present value