Factor Company is planning to add a nevi.r product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $11,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following {PV of $1. FV of $1. PVA of $1. and FVA of _$_1] (Use appropriate factods} from the tables providedJ Expected annual sales of new product $1,950,000 Expected annual costs of new product Direct materials 460,000 Direct labor 650,000 Overhead {excluding straight-line depreciation on new machine) 336,000 Selling and administrative expenses 1?6, Income taxes 32% Required: 1. Compute straight-line depreciation for each year of this new machine's life. 2. Determine expected net income and net cash flow for each year of this machine's life. 3. Compute this machine's payback period. assuming that cash ows occur evenly throughout each year. 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year. 5. Compute the net present value for this machine using a discount rate of 8% and assuming that cash flows occur at each year-end. {Hint Salvage value is a cash inow at the end of the asset's life.) Required 1 Required 2 Required El Required 4 Required 5 Compute straight-line depreciation for each year of this new machine's life. Required 1 Required 2 Required 3 H Required 4 H Required 5 Determine expected net income and net cash ow for each year of this machine's life. Required 1 Required 2 Required 3 Required 4 Required 5 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Payback Period Choose Numerator: Choose Denominator: E Payback Period Payback periodRequired 4 Compute this machine's accounting rate of return, assuming that Income is named evenly throughout each year. Accounting rate of return Required 1 Required 2 Required 3 Required 4 Required 5 Compute the net present value for this machine using a discount rate of 8% and assuming that cash flows occur at each year-end. (Hint: Salvage value is a cash inflow at the end of the asset's life.) (Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign.) Chart Values are Based on: i= % Cash Flow Select Chart Amount X PV Factor Present Value Annual cash flow Residual value Net present value