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 $20,000 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	$ 1,900,000
Expenses
Materials, labor, and overhead (except depreciation)	1,463,000
DepreciationMachinery	120,750
Selling, general, and administrative expenses	156,000

Required: 1. Determine income and net cash flow for each year of this machines life.

Determine income and net cash flow for each year of this machine's life