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e. A new operating system for an existing machine is expected to cost $733,000 and have a useful life of six years. The system
e. A new operating system for an existing machine is expected to cost $733,000 and have a useful life of six years. The system yields an incremental after-tax income of S21S.COO each year after deducting its straight-line depreciation. The predicted salvage value of the system is 573,000 b. A machine costs SSIO.OOO. has a 546.000 salvage value. is expected to last eight years. and will generate an after-tax income of S12S.COO per year after straight-line depreciation Assume the company requires a rate of return on its investments Compute the net present value of each potential investment (PV of $1. Fv' of $1. PVA of Sl. and (use approprlate "'tot(s) from the tables provlded.) of six system ResidL_El Net Cmplete this by Required S A operating system for a an i rcremental aftertax nco m tabs tc $735,000 and u i $215,000 yr after its straight-line The of $75,000. ( Round r 2 to th nearest dollar.)
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