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a. A new operating system for an existing machine is expected to cost $752,000 and have a useful iife of six years. The system yields

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a. A new operating system for an existing machine is expected to cost $752,000 and have a useful iife of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $80,000. b. A machine costs $520,000, has a $48,000 salvage value, is expected to last eight years, and will generate an after-tax income of $130,000 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 S1, EV 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. A machine costs $520,000, has a $48,000 salvage value, is expected to last eight years, and will generate an after-tax income of $130,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)

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