Factor lCompany is planning to add a new product to its line' To manufacture this product, the company needs to buy a new machine a a $487,000 cost with an expected four-year life and a $11,000 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. {PMl of $1, FV of $1, PVA of $1, and FVA of 51] (Use appropriate factorts) from the tables provided.) Expected annual sales of new product $1,950,000 Expected annual costs of new product Direct materials 460,000 Direct labor 650,000 Overhead {excluding straightline depreciation on new machine) 336,000 Selling and administrative expenses 1T6,DDD Income taxes 32% 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 8% and assuming that cash ows occur at each year-end. {Hint Salvage value is a cash inow at the end of the asset's life-) Required 1 Required 2 Required 3 Required 4 Required 5 Compute the net present value for this machine using a discount rate of 8% 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.) (Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign.) Chart Values are Based on: i= 8 % Cash Flow Select Chart Amount X PV Factor S Present Value Annual cash flow Present Value of an Annuity of 1 $ 240,720 x 3.3121 E $ 797,289 Residual value Present Value of 1 $ 11,000 X 0.7350 8,085 Present value of cash inflows $ 805,374 Present value of cash outflows Net present value