Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yields an incremental after tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25.000 b. A machine costs $410,000, has a $26,000 salvage value, is expected to last eight years, and will generate an after-tax income of $75,000 per year after straight line depreciation Assume the company requires a 13% rate of return on its investments. Compute the net present value of each potential investment PV of $1. EV of $1. PVA of S1 and EVA of $(Use appropriate foctor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required a A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000. (Round your answers to the nearest whole dollar) Select Chart Amount PV Factor - Present Value Annual cash flow Residual value Not present value Required B > Required A Required B A machine costs $410,000, has a $26,000 salvage value, is expected to last eight years, and will generate an after-tax of $75,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Amount * PV Factor = Present Value Cash Flow Annual cash flow Residual value Net present value