Factor Company is planning to add a new product to its line. to manufature this produce, the company needs to buy a new machine at $487,000 cost with an expected four-year life and a $10000 salvage value. Additional annual information for this new product line follows. (PV of $1, FV of $1, PVA of $1, FVA of $1) (Use appropriate fatocr(s) from the tables provided.)

sales of new products $1,920,000

expenses

materials, labor and overhead (except depreciation $1,475,000

depreciation- machinery. $119,250

selling, general, and administrative expenses $160,00

1. determine income and net cash flow for each year of the machines life.

2. compute this machines payback period, assuming that cash flows occur evenly throughout each year.

3. Compute net present value dor this machine using a discount rate of 7%.

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 $487,000 cost with an expected four-year life and a $10,000 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.) 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. Determine income and net cash flow for each year of this machine's life. 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 $487,000 cost with an expected four-year life and a $10,000 salvage value. Additional annual information for this new product ine follows. (PV of \$1. EV of \$1. PVA of \$1. and EVA of \$1) (Use appropriate factor(s) from the tables provided.) 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 yeat. 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. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Table B.1* Present Value of 1 p=1/(1+i)n = Table B.2! Future Value of 1 f=(1+i)n Table B. 3ipresent Value of an Asnuity of 1 p=[11/(1+i)n]i 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 $487,000 cost with an expected four-year life and a $10.000 salvage value. Additional annual information for this new product line follows. (PV of S1. PV of S1. PVA of \$1, and EVA of \$1 (Use appropriate factor(s) from the tables provided.) 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 volue for this machine using a discount rate of 7% Complete this question by entering your answers in the tabs below. Compute net present value for this machine using a discount rate of 7%. (Do not roand intecmediato calculations; Nogative amounts should be entered with a minus sign. Found your present volue factor to 4 decimals and final answeri to the nearest. Table B.4 Fature Value of an Annnity of 1 f=[(1+i)n1]/i