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Check my work w 16.66 points a. A new operating system for an existing machine is expected to cost $580,000 and have a useful life
Check my work w 16.66 points a. A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400. b. A machine costs $550,000, has a $27,500 salvage value, is expected to last eight years, and will generate an after-tax income of $66,000 per year after straight-line depreciation. eBook Assume the company requires a 12% 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.) Hint Print Complete this question by entering your answers in the tabs below. References Required A Required B A machine costs $550,000, has a $27,500 salvage value, is expected to last eight years, and will generate an after-tax income of $66,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Residual value ES Net present value ( Required A Required B Check my work 16.66 points a. A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400. b. A machine costs $550,000, has a $27,500 salvage value, is expected to last eight years, and will generate an after-tax income of $66,000 per year after straight-line depreciation. eBook Assume the company requires a 12% 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.) Hint Print Complete this question by entering your answers in the tabs below. References Required A Required B A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400. (Round your answers to the nearest whole dollar.) Select Chart Amount x PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value Recured Required B >
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