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 $503,000 cost with an expected four-year life and a $11,000 salvage value. Additional annual information for this new product line follows. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Sales of new product $ 1,990,000 Expenses Materials, labor, and over hend (except depreciation) 1,497.000 Depreciation Machinery 123,000 Belling, general, and administrative expenses 169,000 Required: 1. Determine income and net cash flow for each year of this machine's life 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year, 3. Compute net present value for this machine using a discount rate of 8%. Expected Income Revenues Sales $ 1,890,000 $ Expenses DepreciationMachinery Materials, labor, and overhead (except depreciation) Selling, general, and administrative expenses 123,000 1,497,000 169,000 Total expenses 1,789,000 101,000 Income Expected Net Cash Flow Income Initial investment $ 101,000 503,000 604,000 Net cash flow $ Numerator: Payback Period Denominator: Annual net cash flow $ Payback Period Initial investment $ 503,000/ 0.83 years 604,000 - Compute net present value for this machine using a discount rate of 8%. (Do not round Intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar) Chart Values are Based on: n 4 8% X Select Chart Present Value of an Annuity of 1 Amount $ 503,000 PV Factor 3.3121 Cash Flow Annual cash flow Salvage value Present Value $ 1,665,986 0 Net present value