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A new operating system for an existing machine is expected to cost $640,000 and have a useful life of six years. The system yields an

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A new operating system for an existing machine is expected to cost $640,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,600. b. A machine costs $580,000, has a $33,800 salvage value, is expected to last eight years, and will generate an after-tax income of $84,000 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. EV of $1. PVA of $1 and EVA of $ (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required. Required B A new operating system for an existing machine is expected to cost $640,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,600. (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 Required ) . A new operating system for an existing machine is expected to cost $640,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10.600. b. A machine costs $580,000, has a $33,800 salvage value, is expected to last eight years, and will generate an after-tax income of $84,000 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 A Required B A machine costs $580,000, has a $33,800 salvage value, is expected to last eight years, and will generate an after-tax income of $84,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Cash Flow Annual cash flow Amount * PV Factor Present Value Residual value Net present value

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