a. A new operating system for an existing machine is expected to cost $560,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $15,200. b. A machine costs $540,000, has a $28,400 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 new operating system for an existing machine is expected to cost $560,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $15,200. (Round your answers to the nearest whole dollar.) Select Chart Amount Cash Flow Annual cash flow Residual value * PV Factor - Present Value - IT Not present value Required > TABLE B.1" Present Value of 1 p=1/(1+0) Periods 9 0.0001 09804 09709 09615 0964 0934 09046 09259 09174 09091 0.9929 02696 09803 0.9612 0.9426 0 9246 09070 0.8900 0.8734 08573 0.8417 0.8264 0.7972 0.7561 09706 0.9423 09151 0.88900 6 0 8960816 0.7938 0.7022 0.7513 0.7118 0.6575 09610 09738 S 0.54 03027 0.7921 07629 0. 750 0.7084 0.6830 09515 9057 08526 03219 07472 071 DROG 62990620905674 0.4972 0.9020088300 R175 0701 2 0705) DUG 06302 05963 05645 0.5066 0.1323 0.8131 0.7599 0 7107 00651 06227 ORES 05470 05132 06523 0.3759 09235 0.8535 0.79940 7307 06763 05278 120 05403 0 5019 0.6665 0.4099 0.1269 0.913 0.8368 0.7664 0.7026 06446 0 19919 054 05002 0.4004 0.4241 0.3606 0.2843 09053 08203 0.7441 0.6756 0.61 0.5584 0.4632 04224 0.2855 03220 02472 08963 OR041 07224 0.6696 0 7 05268 0.4289 0 3875 0.3505 0.2875 0.2149 08874 0.7885 0.2014 0.6246 09 0.6970 04440 0.3971 00055 0.3186 0.2567 0.1959 08787 0.7730 068100 6006 05 0.4688 0415003677 0.3262 07897 0.2292 0.1675 08700 0.757906511 05275 0505 06023 O 03005 0.2992 0261) 02046 0.1013 09613 070006419 05553 080 08173 0362 03152 0225 0220001827 05229 08528 0.77340622 052 058107975 01 2919 2519 02176 0.1631 01069 0.44 0.7142 0 50 05134 0061 03714 0.3166 02703 02111 1978 0.156 0.0929 0.7002 00374 0.4936 0.4155 03503 2999 0250202120 0.1799 0.13000080 08277 0.6864 0.5703 0.4746 039570 3305 0 2765 02317 0.1915 0.1615 0.1161 0.0703 08195 0673000537 0.4564 07760 03118 02684 02145 0.1784 0 186 0.1037 00611 0.7793 06095 0.6776 02751 02957 02330 0.1660 0110000923 0058800304 0.7619 05521 04120 02083 023100 1701 011000040075400573 00334 0151 2059 0000 0 0 2534 018110101 09 00615 00 00 00159 00075 0617 065 02081 0 00072 OGOS 00001100100107 0017 " Ul t ralyd (12 p in Ten i .556. You TABLE B.2 Future Value of 1 1=(1+1) Preds 15 24 5% 6% 7% 9% 10% 12% 15% 34705 1.0000 10000 10000 10000 10000 10000 10000 1.000 1.0000 10000 10000 10100 10200 10000 10000 10500 10600 10700 1000 10000 1000 1.1200 1.0201 10404 1 0609 1.0816 11025 1.1236 1.1449 1.1664 1.1881 1.2100 1.25.44 1.0303 1 0612 1.0927 1.1249 41516 1.1576 1910 1.2250 1.2597 1.2950 13310 1.4009 1.0406 0824 1.1255 1.1699 1.2155 1.2625 1.3108 1105 1.4116 1.5735 10510 1.100 1.1593 12167 1.2753 2162 212 1.4026 1609) 15786 16105 1.7623 10515 1.1262 1.1941 12653 13001 1.4155 1.5007 1 O 15771 1.7716 1.9738 1.0721 17 12299 13159 1407115006 1.6058 17138 1390 1 SRT 22107 1.0309 1.1717 12668 13686 1.4775 1.5838 1.7182 1.850919926 21425 2.4760 1.0937 1.1951 13048 1.4233 1,5513 1.6895 1.8385 1.9990 2.1719 23579 2.7721 1.1046 1.2190 13439 1.4802 1.6289 17908 1.9672 2.15892 3674 3.1058 1.1157 12014133421595 1.7103 10 2019 2016 280 28531 1.1268 12032 145 16010 1.7959 2 0122 22522 25182 2017121384 28127 38960 1.1881 12016 1465 15 1 252 2003 27196 2005 20573 43615 1.1495 13195 15126 1717 19799 2200925785 29172 33417 37975 48871 1.161013059 1.55801009 2078921966 27500 3.1222 36425 1772 1.1726 13728 1.604718230 218292500420522 34259 3.9703 45950 6.1304 1.1843 1.4002 16528 19479 2.2920 2.0928 3.1588 27000 4.3276 50545 6 RECO 1.1961 1472 17024 2025 2066 2854333799 39960 4.2171 55599 1 2081 1.6568 1.7505 21068 25270 30256 36165 3 157 5.1417 6.1159 86128 20122021 ESO 19051 21911 265333207135697 46610 5.604 672759646 25 1.2824 1.60062 0928 26698 3.1964 2919 5.6274 S 86231 1083.47 17 0001 30 .347818114 2.4273 32434 41219 5.7435 7 5123100627 13.2577 17.4494 29 9599 1.4166 1.9999 281393.90615 5160 7.6861 10.5766 14.7853 20.4140 28.1024 52.7996 14899 2200 32620 480107 0400 10.2857 14.9745 21.7245 31.4094 492593 93 0510 10000 1.1500 13225 1.5209 1.7490 20114 2.3131 26600 2.0590 3.5179 4,0456 4.6524 5.3503 1528 70757 8171 93526 10.7613 123755 142318 16.3565 72 9190 552118 132.1755 267.8625 76900 F U p ute the value of n e w Forme: What is the accumulated to invested day compounded 5 years! Using TABLE B.3 Present Value of an Annuity of 1 Rate Perlods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 00 09904 19704 1 9416 2141028899 2002019077 57955 56014 6.728264720 7.5517 7.3255 R560 1622 9.4713 9826 103676 9.7868 11 2551 10.5753 12.1337 11.3484 120017 12.1062 138651 12893 147179 115777 1556 162919 161983 19820 172200 15.675 180456 16 15 14 22 0212 195235 25 8077 22 3965 29.4086 20.9986 32.8347 27.3555 09209 09615 09524 09434 0914609200917400091 899 000 1.9115 1.8861 18594 1 8080 17813 1759117355 16001 16252 2.8286 27751 22232 25730 2620 25771 2531324869 20018 22832 3717110299 2546024651 222 221 3229731699 2007) 2550 45797 518 1795 100239927 32897 37908 3608 33572 54172 52421 50757 49173 760S 46229 459 4355 1114 37845 623036.0021 57864 5574 5789352064 503304868445638 41604 7.0197 6.7327 6.6612 2 0985971257466 553435 336949676 4.4873 7.7861 74753 7 1078 2017 65152 6240959952 57590 5022 4.7716 85302 11097.7217 71601 70236 67101 4 17761445 5.6502 50188 9.2526 7605 3 064 ZAO 2497 21700 6805264951 59377 52337 99540 9.2851 8.3838 79027 7516171607 68137 6100150206 10.6350 9.9866 33 8527 157 708 70869710346.4235 S5831 112961 10:56:31 1936 9.2950 7455 2442 778627 3667 66282 5.7245 11.9079 11.114 10797 02122 1 079 BOOT 76061 6810358474 12.5611 11.55231038 10 1059 9 514 312678237 69740 59542 051121051 112741 104773 976231216 540680216 7.1196 13.7575 1201 110 10.322610009197219 27556 8 2014 72091 61280 63223 121 12685311151 1036 96016 89501 236497558 148775 12000 120622110 1090 98181 9128525136 7.6698 2593 17.6131 15 221 699 12783411 SG 10.626 98026 90770 780 64641 19.6004 17 2920 153725 13.7648 12.4090 11.2578 10.2737 9 4269 80552 6.5660 21.4872 18.6666 163742 144982 12.9477 11.6546 10.5668 9.6442 1755 6.6166 23.1148 19.7928 17.1591 15.0463 133317 11.9246 10.7574 9.7791 8.2438 66418 TUsed to calculate the p interest of r ies of equipm e nt of chrid Foresme: What is the w 10,195), the Paris 64127.20 or 10 years is the gu o de 2000 year for 10 years sing X 6.402 i S=[(1 + 1 - 1 TABLE B.4 Future Value of an Annuity of 1 Periods 1 2 % 3% 4% 6% 7% 8% 9% 10% 12% 15% 87537 9 10 12 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 20100 20200 201 20400 205.00 206002 0700 20800 20900 21000 21200 2.1500 20201 20604 309092121621525 126 1210932064 32781 27100 33744 2.4725 40604 4.1216 418364 2465 1101 47746 44299 45061 45731 46410 47793 9934 5.1010 5.2040 5.30915.41635.5256 56371 5.7507 5.8666 59847 61051 63528 67424 6.1520 6.2081 6.4684 6603068019 69753 71523 7 3759 75733 27156 1152 7.2135 7.4343 76525 793 1420R 18 26540 8.9228 9.2004 94872 100890 11.0668 8.2857 8.5830 8.8923 9.2142 9 5491 9,8975 10.2598 10.6366 11.0285 11.4359 12.2997 12.7258 9 3685 9.7546 10.1591 105828 11.0206 11.4017 11.9780 12 4876 13 0210 125795 10.7757 7157167858 10.4622 10.9197 11.4639 12.0061 12.5779 131808 13.8164 14.4866 15.1929 159374 17.5487 20.3037 11.5668 12.1687 12.8078 13486414 2068 149716 15.7836 16 6455 175603 18.5312 20.6546 24 3493 12.6825 13.4121 14.1920 15 0268 15.917116 8699 17885 18977120.1407 21 3843 241331 29.0017 13 8093 14.680315 6178 166268 17.7130 188821 20.1606214953 22.0634245227 28.0291 343519 149474 15.9739 17086) 2919 19 506 210151225505 262149 260192 270750 32.3926 605007 16.099 17.2974 20025 2157622270 25 1200 27 1521 29 109 717725 37.2797 475804 17.7579 186093 20.1569218205 236575 25 6775 22 3130 320 33003435.9497 42.7533 55.7175 R4304 20 0121 21.1616 22697525340202129 30 8802 33 7502369737 0567 48 8837 65 0751 19.6147 21.4123 2341012564 2813 309057 330920 37502 41301) 45 592 55.7497 75.8354 20 8109 228006 25.1169 2767120570 37000 37 3790416463 4601S 51.1591 610097 88.2113 22.0190202976 26 3704 297781 1 7 67956 09955 5 7520 51 1601 57 2750 720524 102 4436 28 2422 320303 36.53 1 47 7271 54 65 622090721099 4009 8 371 133 2009 2127920 347849 405681 47 5754 56 66 790532 468 1132596 S 16409002417327 1347451 41 6603 49.9945 60.0521 72652230320311133 1382859 1723168 215 1108 2710201 1665 $81.1702 88864 0.0020 5.801) 502551207908154700 1965 29056512 0122 67 0914 1.779 0903 17 0 d e future valoares of wine For matendo each 150 400 Forum What is the real x 200 w y mi a. A new operating system for an existing machine is expected to cost $560,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $15,200. b. A machine costs $540,000, has a $28,400 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 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 machine costs $540,000, has a $28,400 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.) Select Chart Amount PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value