Factor Company is planning to add a new product to its IIne. To manufacture this product, the company needs to buy a new machine at a $$503,000$ cost with an expected four$-$year life and a $$10,000$ salvage value. Additional annual information for this new product line follows. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Sales of new product

Expenses

Materials, wabor, and overhead $($except depreciation$)$

Depreciation$-$Machinery

Selling, general, and administrative expenses

$$1,980,000$

$1,488,000$

$123,250$

$150,000$

Required:

Determine income and net cash flow for each year of this machine's life.

Compute this ma$$hine$\text{'}$s payback period, assuming that cash flows occur evenly throughout each year.

Compute net present value for this machine using a discount rate of $8\%.$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Determine income and net cash flow for each year of this machine's life.

$\backslash$table$[[$Annual amounts,Income,Cash Flow$],[$Sales of new product,$$,1,980,000$