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o. A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields

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o. A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000 b. A machine costs $560,000, has a $56,000 salvage value is expected to last eight years, and will generate an after-tax income of $150,000 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. EV of $1. PVA Si, and EVA 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 $820,000 and have a useful le of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $100,000. (Round your answers to the nearest whole dollar) Select Chart Amount X PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value Required Required 0 > Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $560,000, hos a $56,000 salvage value, is expected to last eight years, and will generate an after tax income of $150,000 per year after straight-line depreciation, (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount X PV Factor - Present Value Annual cash flow Residual value Net prosent value

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