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. A new operating system for an existing machine is expected to cost $730.000 and have a useful life of six years. The system yields

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. A new operating system for an existing machine is expected to cost $730.000 and have a useful life of six years. The system yields an incremental after-tax income of $280,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $22,000. b. A machine costs $510,000, has a $22,400 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, PV of $1, PVA of $1, and PVA 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 $730,000 and have a useful life of six years. The system yields an incremental after-tax income of $280,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $22,000. (Round your answers to the nearest whole dollar) Cash Flow PUH Annual cash flow Residual value Net present value Required B > a. A new operating system for an existing machine is expected to cost $730,000 and have a useful life of six years. The system yields an incremental after-tax income of $280,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $22,000. b. A machine costs $510,000, has a $22,400 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 $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 machine costs $510,000, has a $22.400 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

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