Exercise 24.6 Net present value LOP3 a. A new operating system for an existing machine is expected to cost $735,000 and have a useful life of six years. The system yields an incremental after-tax income of $215,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $75,000. b. A machine costs $510,000, has a $46,000 salvage value, is expected to last eight years, and will generate an after-tax income of $125,000 per year after straight-line depreciation. Assume the company requires a 11% 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.) Complete this question by entering your answers in the tabs below. Required Required B A new operating system for an existing machine is expected to cost $735,000 and have a useful life of six years. The system yields an incremental after-tax income of $215,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $75,000. (Round your answers to the nearest whole dollar.) Amount x PV Factor - Present Value Cash Flow Annual cash flow Residual value Select Chart Present Value of an Annuity of 1 Present Value of 1 Net present value Required B > e n . Novo Assume the company requires a 11% rate of return on its Investments. Compute the net present value of each potential Investmente of $1. FV of $1. PVA of $1. and FVA 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 machine costs $510,000, has a $46,000 salvage value, is expected to last eight years, and will generate an after-tax income of $125,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value ( Required A