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

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Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine of 5503.000 cost with an expected four year life and a $23,000 salvage value. Additional annual information for this new product line follows PV of S1. Ev of $1. PVA O S1, and EVA - 50 (Use appropriate factor(s) from the tables provided.) Alen of www product $ 1,990,000 Expenses Materials, labor, and overbed (except depreciation) 1,485,000 Depreciation-Machinery 120.000 Selling, general, and administrative expenses 154.000 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, Expected Income Revenue Sales Expenses $ 1,990,000 + Expected Net Cash Flow 0 Nehow Required 2 > 1 Nort LUIES YOU TO any movinu Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Payback Period Numerator Denominator: Payback Period 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute net present value for this machine using a discount rate of 7%. (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: % Select Chant Amount PV Factor Cash Flow Annual cash flow Salvage value Present Value $ 0 0 = Net present value

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