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Exercise 24-6 Net present value LO P3 A. A new operating system for an existing machine is expected to cost $854,000 and have a useful

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Exercise 24-6 Net present value LO P3 A. A new operating system for an existing machine is expected to cost $854,000 and have a useful life of six years. The system yields an incremental after tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $110,000 b. A machine costs $580,000, has a $60,000 salvage value, is expected to last eight years, and will generate an after-tax income of $160.000 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 51. EVO 51. PVA O S1, and EVA OL51) (Use appropriate factor(s) from the tables provided.) 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 $854,000 and have a useful life ylelds an incremental after tax income of $250,000 each year after deducting its straight-line depreciation Salvage value of the system is $110,000. (Round your answer to the nearest whole dollar) Select Chart Cash Flow Arun cash flow Residual valio Amount A x PV Factor - Present Value MMANN ELLIT 7 Not present value ( Requlrod A Required B Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $854,000 and have a useful life of six years. The system yleids an incremental after-tax income of $250,000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $110,000 . A machine costs $580,000, has a $60,000 salvage value, is expected to last eight years, and will generato an after-tax income of $160,000 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 51. EVO 51. PVA 51, and EVA OSI) (Use appropriate factors) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $500,000, has a $60,000 salvage value is expected to last eight years, and will generate an after tax income of $180.000 per year after straight-line depreciation (Round your answers to the nearest Whole dollar Select Chart Amount PV Factor Present Value Cash Flow Arnul cash flow Residual value Not present value (Required Reroda

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