e completed so far. It does not indicate completion. Return to qu Exercise 11-5 Payback period computation; even cash flows Lo P Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of six years. The system yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $210,000, has a $14,000 salvage value, is expected to last seven years, and will generate an after-tax income of $43,000 per year after straight-line depreciation. 3Answer is complete but not entirely correct Payback Peried Choose Payback Period Choose Numerator: Annual net cash Payback period Cost of investment flow 2.23 years 270,000 210,000 121,217 5342.000.00years b. Prev1 of 6li Next > apter 11 Assignment Help Save&Exit Submit 2 Check my work 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 an incremental after-tax income of $240.000 each year after deducting its straight-line depreciation. The predicted salvege value of the system is $26,400. ints Skipped ) b. A machine costs $480,000, has a S21.500 salvage value, S expected to last eight years, and wm generate an aftertax neone 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 invest 1. PVA of $1, and FVA ot $) (Use appropriate factorts) from the tables provided.) PV of S1. EV of S1 eBook Complete this question by entering your answers in the tabs below. Required A Required 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 yields 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. (Round your answers to the nearest whole dollar.) Refefences Annual cash flow Residual value Net present value Required B > MacBook Ain 2 an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of K Prex 2 of 6 MacBook A