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 $483,000 cost with an expected four-year life and a $19,000 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.) $ 1,970,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses 1,480,000 116,000 158,000 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 7%. 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. $ 1,970,000 Expected Income Revenues Sales Expenses Materials, labor, and overhead (except depreciation) Sales $ 1,480,000 Selling, general, and administrative expenses Depreciation-Machinery Total expenses 1,480,000 Expected Net Cash Flow 0 Net cash flow Required 1 Required 2 Required 3 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Payback Period Denominator: Numerator: 11 Payback Period 0 11 Required 1 Required 2 Required 3 Compute net present value for this machine using a discount rate of 7%. (Do not round intermediate calculations. Rou factor to 4 decimals and final answers to the nearest whole dollar.) Chart Values are Based on: n = i = % Select Chart Amount PV Factor Cash Flow Annual cash flow Salvage value Present Value $ = 0 0 Net present value