Compute the net present value of each potential investment:

Assume the company requires a 10% rate of return on its investments. (FV of $1, PV of $1, FVA of $1and PVA of $1) (Use appropriate factor(s) from the tables provided.)

a.	A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. (Round your answer to the nearest whole dollar.)

b.	A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation. (Round your answer to the nearest whole dollar.)

TABLE B.1 Present Value of 1 Rate Perieds 4% 7% 9% 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.909 08929 0.8696 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7561 0.9706 0.9423 .9 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.718 0.6575 0.9610 0.9238 08885 0.8548 0.8227 0.792 0.7629 0.7350 0.7084 0.6830 0.6355 0.5718 0.9515 0.07 08626 0.829 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.4972 0.9420 0.8880 08375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 0.4323 0.9327 0.8706 0.813 0.99 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 0.3759 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 04039 0.3269 0.9143 0.8368 0.7664 0.7026 0.6446 0.99 0.5439 0.5002 0.4604 0.424 0.3606 0.2843 10 0.9053 0.8203 0744 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220 0.2472 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.2875 0.2149 0.8874 0.7885 0.04 0.6246 0.5568 0.4970 0.4440 0.397 0.3555 0.3186 02567 0.1869 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 04150 0.3677 0.3262 0.2897 0.2292 0.1625 0.8700 0.579 0.66I 0.5775 0.505 0.4423 0.3878 0.3405 0.2992 0.2633 0.2046 0.1413 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 0.8528 0.7284 0.6232 0.5339 048 0.3936 0.3387 0.2919 0.2519 0.2176 0.16 0.1069 0.8444 0.7142 0.600 0.5134 0.4363 0.3714 0.3166 0.2703 0.231 0.1978 0.1456 0.0929 0.8360 0.7002 05874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.799 0.1300 0.0808 0.8277 0.6864 05703 0.4746 0.3957 03305 0.2765 0.2317 0.1945 0.1635 0.6 0.0703 20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0611 0.7798 0.6095 0.4776 0.375 0.2953 0.2330 0.1842 0.460 0.160 0.0923 00588 0.0304 0.7419 55 0.4120 0.3083 0.2314 0.174 0.314 0.0994 0.0754 0.0573 0.0334 0.0151 0.7059 0.5000 0.3554 0.2534 0.1813 0.1301 0.0937 0.0676 0.0490 0.0356 0.0189 0.0075 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.022 0.0107 0.0037