a. A new operating system for an existing machine is expected to cost $540,000 and have a useful life of six years. The system yields an incremental after-tax income of $235,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $12,000. b. A machine costs $490,000, has a $22,100 salvage value, is expected to last eight years, and will generate an after- tax income of $80,000 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 B Required A A new operating system for an existing machine is expected to cost $540,000 and have a useful life of six years. The system yields an incremental after-tax income of $235,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $12,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount PV Factor Present Value Annual cash flow $ 0 Residual value 0 = Net present value > Required B Required A Required A Required B A machine costs $490,000, has a $22,100 salvage value, is expected to last eight years, and will generate an after-tax income of $80,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount PV Factor Present Value X $ Annual cash flow Residual value 0 = Net present value KRequired A Required B