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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 $837,000 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 $837,000 and have a useful life of six years. The system yields an incremental after-tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $105,000 b. A machine costs $570,000, has a $58,000 salvage value, is expected to last eight years, and will generate an after tax income of $155.000 per year after straight-line depreciation points eBook Assume the company requires a 13% 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 appropriate factor(s) from the tables provided.) References 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 $837.000 and have a useful life of six years. The system Vields an incremental after-tax income of $245.000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $105,000. (Round your answers to the nearest whole dollar) 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 $837,000 and have a useful life of six years. The system yields an incremental after-tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $105,000. (Round your answers to the nearest whole dollar.) Select Chart Amount x PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value Required B > Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $70,000, has a $58,000 salvage value, is expected to last eight years, and will generate an after-tax income of $155,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) ebook Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Residual value Print References Net present value (Required A

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