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Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four your life and a $19,000 salvage value. All sales are for cash, and all costs are out of pocket except for depreciation on the new machine. Additional information includes the following (PV of 5). EV of S1, PVA of 51, and EVA of 51) (Use appropriate factor(s) from the tables provided.) $1,150,000 Expected annual sales of new product Expected annual costs of new product Direct materiale Direct Tabor overhead (excluding straight line depreciation on new machine Selling and administrative expenses Tncome ta 485.000 670.000 338,000 174,000 34 Required: 1. Compute straight line depreciation for each year of this new machine's life 2. Determine expected net income and not cash flow for each year of this machine's life 3. Compute this machine's payback period, assuming that cash flows occur ovenly throughout each year, 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year, 5. Compute the net present value for this machine using a discount rate of 7% and assuming that cash flows occur at each year-end (Hint Salvage value is a cash inflow at the end of the asset's life) Required 1 Required 2 Required Required 4 Required 5 Determine expected net income and net cash flow for each year of this machine's life ok $ 1,980,000 Expected Not Income Revenues Sales Expenses Direct materials Direct labor Overhead excluding straight-line depreciation on now machine Straight-line depreciation on new machine Selling and administrative expenses $ inces 490,000 671,000 335,000 117,000 162,000 Total expenses 1,778,000 Expected Net Cash Flow 0 Required: 1. Compute straight-line depreciation for each year of this new machine's life 2. Determine expected net income and net cash flow for each year of this machine's life 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year. 5. Compute the net present value for this machine using a discount rate of 7% and assuming that cash flows occur at each year-end. (Hint Salvage value is a cash Inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Required 3 Required 4 Required 5 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Payback Period Choose Numerator Choose Denominator Payback Porlod Payback period 0