Ch 5 nts a. A new operating system for an existing machine is expected to cost $650,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value o the system is $15.000. b. A machine costs $380,000, has a $25.400 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Skipped eBOOK Hint Complete this question by entering your answers in the tabs below. Print Required A Required B A new operating system for an existing machine is expected to cost $650,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $15,000. (Round your answers to the nearest whole dollar) Select Chart Amount * PV Factor Cash Flow Annual cash flow Residual value Present Value S 0 0 Nel present value Prev 5 of 19 Next 5 ants a. A new operating system for an existing machine is expected to cost $650,000 and have a useful life of six years. The system yields an incremental after-tax income of $205,000 each year after deducting its straight-line depreciation. The predicted salvage value o the system is $15,000. b. A machine costs $380,000, has a $25,400 salvage value, is expected to last elght years, and will generate an after-tax income of $60,000 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) Skipped eBook Hint Complete this question by entering your answers in the tabs below. Pint Required A Required B A machine costs $380,000, has a $25,400 salvage value, is expected to last eight years, and will generate an after-tax Income of $60,000 per year after straight-line depreciation (Round your answers to the nearest whole dollar) Select Chart Amount X PV Factor Present Value Cash Flow Annual cash flow Residual value s 0 0 Nel present value