A machine can be purchased for $80,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied using a five-year life and a zero salvage value Year 1 Year 2 Year 3 Year 4 Year 5 Net income $5,300 $13,300 $35,000 $19,900 $53,200 Compute the machine's payback period (ignore taxes) (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow (80,000) (80,000) 0 $ 1 $ 2 3 5.300 13,300 35.000 19,000 53.200 4 5 Payback period 8. A new operating system for an existing machine is expected to cost $616,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $40,000 b. A machine costs $440,000 has a 532,000 salvage value is expected to last eight years, and will generate an after-tax income of $90.000 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 S1 and EVA of.51) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B Required A Required B A new operating system for an existing machine is expected to cost $616,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $40,000. (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount x PV Factor - Present Value Annual cash flow Residual value Not present value Required) Required A Required B A machine costs $440,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $90,000 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 Not present value