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a. A new operating system for an existing machine is expected to cost $700,000 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 $700,000 and have a useful life of six years. The system yields an incremental after-tax income of $300,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,000. b. A machine costs $580,000, has a $36,800 salvage value, is expected to last eight years, and will generate an after-tax income of $88,000 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 51. PVA of 51, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required A machine costs $580,000, has a $36,800 salvage value, is expected to last eight years, and will generate an after-tax Income of $88,000 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 Help a. A new operating system for an existing machine is expected to cost $700,000 and have a useful life of six years. The system yields an incremental after-tax income of $300,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,000. b. A machine costs $580,000, has a $36,800 salvage value, is expected to last eight years, and will generate an after-tax income of $88,000 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 51. FV Of 51 PVA of 51, and FVA of 5) (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 $700,000 and have a useful life of six years. The system yields an incremental after-tax income of $300,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,000. (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 Reguired >

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