Help Save & Exit Submit a. A new operating system for an existing machine is expected to cost $718,000 and have a useful life of six years. The system yields an incremental after-tax income of $210,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $70,000, b. A machine costs $500,000, has a $44,000 salvage value, is expected to last eight years, and will generate an after-tax income of $120,000 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 Required B A new operating system for an existing machine is expected to cost $718,000 and have a useful life of six years. The system yields an incremental after-tax income of $210,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $70,000. (Round your answers to the nearest whole dollar.) Cash Flow Annual cash flow Residual value Select Chart Amount x PV Factor Present Value Net present value A new operating system for an existing machine is expected to cost $718,000 and have a useful life of six years. The system yields an incremental after-tax income of $210,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $70,000. b. A machine costs $500,000, has a $44,000 salvage value, is expected to last eight years, and will generate an after-tax income of $120,000 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $500,000, has a $44,000 salvage value, is expected to last eight years, and will generate an after-tax income of $120,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Annual cash flow Residual value Select Chart Amount x PV Factor Present Value $ 0 D Net present value