Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to bury a new machine at

a $$503,000$ cost with an expected four$-$year life and a $$20,000$ salvage value. Additional annual information for this new product line

follows. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and PVA of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

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

$2$ Compute this machine's payback perlod, assuming that cash flows occur evenly throughout each year.

Compute net present value for this machine using a discount rate of $6\%.$

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Required $1$

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