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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 $520,000 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 $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 b. A machine costs $380,000, has a $20.000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 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 of S1, EV of St. PVA of S1, and EVA of $1] (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 $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. (Round your answers to the nearest whole dollar.) Select Chart Cash Flow Annual cash flow Residual value Amount X PV Factor Present Value Net present value Required 8 ) 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 an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage the system is $10,000 b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax inco $60,000 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 investn PV of S1. FV of $1. PVA of S1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar) Select Chart Amount xPV Factor Present Value Cash Flow Annual cash flow Residual value Net present value

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