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Compute the net present value of each potential investment. Assume the company requires a 12% rate of return on its investments. (FV of $1. PV
Compute the net present value of each potential investment. Assume the company requires a 12% rate of return on its investments. (FV of $1. PV of $1. FVA of S1 and PVA of S1) (Use appropriate factor(s) from the tables provided.) A new operating system for an existing machine is expected to cost $690,000 and have a useful life of six years. The system yields an incremental after-tax income of $195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25, 600. A machine costs $390,000. has a $27, 800 salvage value, is expected to last eight years, and will generate an after-tax income of $70,000 per year after straight-line depreciation
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