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PLEASE ANSWER ALL PARTS. WILL LIKE. THANK YOU a. A new operating system for an existing machine is expected to cost $667,000 and have a
PLEASE ANSWER ALL PARTS. WILL LIKE. THANK YOU
a. A new operating system for an existing machine is expected to cost $667,000 and have a useful life of six years. The system yields an incremental after-tax income of $195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $55,000. b. A machine costs $470,000, has a $38,000 salvage value, is expected to last eight years, and will generate an after-tax income of $105,000 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. A new operating system for an existing machine is expected to cost $667,000 and have a useful life of six years. The system yields an incremental after-tax income of $195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $55,000. (Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. A machine costs $470,000, has a $38,000 salvage value, is expected to last eight years, and will generate an after-tax income of $105,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)Step by Step Solution
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