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 $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) a. 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 $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,400. Cash Flow Select Chart Amount x PV Factor Present Value 312,720 x Annual cash flow Residual value Net present value