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Compute the payback period for each of these two separate Investments: a. A new operating system for an existing machine is expected to cost $250,000

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Compute the payback period for each of these two separate Investments: a. A new operating system for an existing machine is expected to cost $250,000 and have a useful life of five years. The system yields an incremental after-tax income of $72,115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $170,000, has a $13,000 salvage value, is expected to last seven years, and will generate an ofter-tax income of $39,000 per year after straight-line depreciation. Payback Period Choose Denominator Choose Numerator: Payback Period Payback period 0 0 b a. A new operating system for an existing machine is expected to cost $803,000 and have a useful life of six years. The system yields an incremental after-tax income of $235,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $95.000 b. A machine costs $550,000, has a $54,000 salvage value, is expected to last eight years, and will generate an after-tax income of 2 $145,000 per year after straight-line depreciation Assume the company requires a 10% 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required A new operating system for an existing machine is expected to cost $803,000 and have a useful life of six years. The system yields an incremental after-tax income of $235,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $95,000. (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount * PV Factor - Present Value Annual cash flow $ 0 Residual value 0 Net present value Required> A machine costs $400,000 and is expected to yield an after-tax net income of $9,000 each year, Management predicts this machine has a 11-year service life and a $80,000 salvage value, and it uses straight-line depreciation Compute this machine's accounting rate of return Accounting Rate of Return Choose Denominator: Choose Numerator 4 Accounting Rate of Return Accounting rate of retum 0

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