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a. A new operating system for an existing machine is expected to cost $680,000 and have a useful life of six years. The system yields

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a. A new operating system for an existing machine is expected to cost $680,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,200. b. A machine costs $440,000, has a $22,100 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 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 EVA of $1) (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 $680,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,200. (Round your answers to the nearest whole dollar.) Select Chart Amount X PV Factor Present Value Cash Flow Annual cash flow Residual value Net present value Race Required B) a. A new operating system for an existing machine is expected to cost $680,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24.200. b. A machine costs $440,000, has a $22,100 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 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 appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $440,000, has a $22,100 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) Sulect Chart Amount PV Factor Present Value Cash Flow Annual cash flow Ronium Volvo Not present value

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