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a. A new operating system for an existing machine is expected to cost $750,000 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 $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $160,000 each year after deducting its straight-line preciation. The predicted salvage value of the system is $14,800 b. A machine costs $460,000, has a $29,900 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 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 $750,000 and have a useful life of six years. The system yields an incremental after tax income of $100,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,800. (Round your answers to the nearest whole dollar.) Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Roslala SIZ,000 per year aner straight-line depreciation. Assume the company requires a 10% rate of return on its investments Compute the net present value of each potential in (PV or $1, FV of $1, PVA of S1, 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 $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $160,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,800. (Round your answers to the nearest whole dollar.) Select Chart Amountx PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value Required B >

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