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o. A new operating system for an existing machine is expected to cost $520,000 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 $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and wil generate an atter-tax income of $60,000 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 S1, and EVA of $0 (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount * PV Factor Present Value Annual cash flow Residual value Assume the company requires a 10% rate of return on its investments Compute the net present value of each potential inve (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 machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after tax income of $60,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount * PV Factor Present Value Annual cash flow Residual value Net present value

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