Help a. A new operating system for an existing machine is expected to cost $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $295,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $13,600. b. A machine costs $430,000, has a $39,200 salvage value, is expected to last eight years, and will generate an after-tax income of $70,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment, (PV of $1. FV of $1. PVA Of 51, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A new operating system for an existing machine is expected to cost $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $295,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $13,600. (Round your answers to the nearest whole dollar) PV Factor Present Value Cash Flow Annual cash flow Residual value $ $ Amount 408,333 13,6001 X Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value Required 3 > a. A new operating system for an existing machine is expected to cost $750,000 and have a useful life of six years. The system yields an incremental after-tax income of $295,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $13,600. b. A machine costs $430,000, has a $39,200 salvage value, is expected to last eight years, and will generate an after-tax income of $70,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Require A machine costs $430,000, has a $39,200 salvage value, is expected to last eight years, and will generate an after-tax income of $70,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Amount PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value