a. A new operating system for an existing machine is expected to cost $531,000 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 $15,000. b. A machine costs $390,000, has a $22,000 salvage value, is expected to last eight years, and will generate an after-tax income of $65,000 per year after straight-line depreciation. Assume the company requires a 11% 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 $531,000 and have a useful life of six years. Th yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The pre salvage value of the system is $15,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Annual cash flow Residual value Amount x PV Factor Present Value $ 241,000 $ 0 $ 15,000 X 0 Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value Roguing Required B > an arter-tax income of $65,000 per year after straight-line depreciation. U wir yene Assume the company requires a 11% rate of return on its investments. Compute the net present value of e potential investment. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the ta provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $390,000, has a $22,000 salvage value, is expected to last eight years, and will generate an income of $65,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar Cash Flow Select Chart Amount X PV Factor = Present Value $ 0 Annual cash flow Residual value 0 Net present value