Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $490,000 cost with an expected four-year life and a $16,900 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. (FV of $1, PV of $1, EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 16 Expected annual sales of new product $1,960,000 Expected annual costs of new product Direct materials 465,000 Direct labor 677,000 Overhead excluding straight-line depreciation on new machine 336,000 Selling and administrative expenses 167,000 Income taxes 36%