eBook Print References Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $480,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual Information for this new product line follows. (PV of $1. FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and adsinistrative expenses Required: 1. Determine Income and net cash flow for each year of this machine's life $ 1,840,000 1,488,000 115,000 183,100 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7% Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Determine income and net cash flow for each year of this machine's life. Annual amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Net cash flow Income Cash Flow S 1,840,000 1.480.000 115,000 183,100 S 53.000 Required 2 > Required: 1. Determine Income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each y 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Payback Period Numerator: Denominator: Payback Period Required 1 Required 2 Required 3 Compute net present value for this machine using a discount rate of 7%. (Do not roundtermediate calculations. Negative amounts should be entered with a minus sign. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Years 1-4 Salvage value. year 4 Total Net present value Net Cash Flows Present Value at 7% Present Value of Net Cash Flows