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 $499,000 cost with an expected four-year life and a $19,000 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 factor(s) from the tables provided.) $1,960,000 Expected annual sales of new product Expected annual costs of new product Direct materials Direct labor Overhead (excluding straight-line depreciation on new machine) Selling and administrative expenses Income taxes 470,000 675,000 336,000 160,000 40% 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 flows 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 6% 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.) Expected Net Income Revenues Sales $ 1,960,000 Expenses Direct materials $ 470,000 Direct labor 675,000 336,000 Overhead excluding straight-line depreciation on new machine Selling and administrative expenses Straight-line depreciation on new machine 160,000 120,000 Total expenses 1,761,000 Expected Net Cash Flow 0 X Answer is not complete. Complete this question by entering your answers in the tabs below. 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: Payback Period II Payback period 0 Required 2 Required 4 > 3. Lumpule ulit TIEL PIESEll value IUI LITIO MALTE ulliy a uiscount TALE VI U70 ariu assumiy LIIAL LAST HOW vului al call year-enu. (Hint. Salvage value is a cash inflow at the end of the asset's life.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year. Accounting Rate of Return Choose Numerator: Choose Denominator: = Accounting Rate of Return Accounting rate of return 0