Cho 2 Exercise 11-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $560,000 and have a useful life of six years. The system yields 2.5 oints an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,400. b. A machine costs $480,000, has a $21,500 salvage value, is expected to last eight years, and will generate an after-tax income of $70.000 per year after straight-line depreciation Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below Hiet Required ARequired B A new operating system for an existing machine is expected to cost $560,000 and have a useful life of six years. The system salvage value of the system is $26,400. (Round your answers to the nearest whole dollar.) Print Ayields an Incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted References h FlowSelect Chart Annual cash flow Residual value Net present value Required B > Chapter 11 Assignment Help Save & Ex 2 Chee Exercise 11-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $560.000 and have a useful life of six years. The system yields 2.5 points an incremental after-tax income of $240,000 each year after deducting its straight-ine depreciation. The predicted salvage value of the system is $26,400. b. A machine costs $480,000. has a $21,500 salvage value, is expected to last eight years, and will generate an after-tax income of $70,000 per year after straight-line depreciation. Assume the company requires a 12% rate o return on its investments. Compute the net present value of each potential i vestment (pyors. rvotsi, PVAof SI and EVA0S) (Use appropriate factor(s) from the tables provided.) i Complete this question by entering your answers in the tabs below. Hint Required A Required B Print A machine costs $480,000, has a $21,500 salvage value, is expected to last eight years, and will generate an after-tax HRHincome of $70,000 per year after straight-line depreciation. Round your answers to the nearest whole doilar) References Flow Select Chart Amount | x PV Factor Present Val Annual cash flow Resdual value Net present value Required 2016 Next