Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an Incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $27,000. b. A machine costs $560,000, has a $26,900 salvage value, is expected to last eight years, and will generate an after-tax Income of $86,000 per year after stralght-lne depreclation. 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 FVA of $1) (Use appropriete 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 $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $27,000. (Round your answers to the nearest whole dollar.) AmountPV FactorPresent Value Cash Flow Annual cash flow Residual value Select Chart Net present value RequiredB >