Check my work mode: This shows what is correct or incorrect for the work you have complete Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25.000. b. A machine costs $410,000, has a $26.000 salvage value, is expected to last eight years, and will generate an after-tax income of $75,000 per year after straight-line depreciation. Assume the company requires a 13% 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 $(Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. 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 $565,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000. (Round your answers to the nearest whole dollar) Cash Flow Annual cash flow Residual value $ Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value Amount 255,000 25.000X X Factor 3.9980 0 .4803 Present Value 1,019.490 12.008 1,031,498 (565,000) 466 498 Required Required B > Exercise 24.6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $565.000 and have a useful life of six years. The system yields an incremental after-tax income of $165.000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000 b. A machine costs $410,000, has a $26.000 salvage value, is expected to last eight years, and will generate an after-tax income of $75 000 per year after straight-line depreciation Assume the company requires a 13% rate of return on its investments Compute the net present value of each potential investment PV of $1. FV of $1. PVA of S1, and EVA of S1) (Use appropriate foctor(s) from the tables provided.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $410,000, has a 526,000 salvage value, is expected to last eight years, and will generate an after-tax income of 575,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) - pv - Cash Flow Select Chart Amount Annual cash flow Residual value $ $ 123,000 26,000 X X Factor 3.99803 0.4803 Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Present value of cash inflows Net present value Present Value 491,754 12488 504 242 (410,000) 94242 (Required A
