1. A new operating system for an existing machine is expected to cost $531,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $15,000.
2. A machine costs $390,000, has a $22,000 salvage value, is expected to last eight years, and will generate an after-tax income of $65,000 per year after straight-line depreciation.

Assume the company requires a 11% 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.)