Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $600,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,600 machine costs $400,000, has a $23600 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 per year after straight-line depreciation. es a 10% rate of return on its investments. Compute the net present value of each potential investment (PV of S1. EV of S1. PVA of $1, and FVAof $1) (Use appropriate factorts) 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 $600,000 and have a useful ife of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,600. (Round your answers to the nearest whole dollar.) ct Chart Annual cash flow Residual value Net present value Required B > Exercise 24-6 Net present value LO P3 a. A new operating system for an existing machine is expected to cost $600,000 and have a useful life of six years. The system yields b. A machine costs $400.000, has a $23,600 salvage value, is expected to last eight years, and will generate an after-tax income of Assume the comp any requires a an incremental after-tax income of $155.000 each year after deducting its straight-ine depreciation. The predicted salvage the system is $25,600. $72,000 per year after straight-line depreciation % rateof return on its investments. Compute the net present value of each potential investment. EVA of $) (Use appropriate factorfs) from the tables provided.) PY of S1. EV of S1 PVA of S1, and Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $400,00o, has a $23,600 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Annual cash flow Residual value Net present value