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please assist i am stuck, it says i needs to be four decimal places a. A new operating system for an existing machine is expected
please assist i am stuck, it says i needs to be four decimal places
a. 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 will generate an after-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 S1, PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. 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 $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) w]x] Answer is complete but not entirely correct. 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 $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.) PV Present Cash Flow Select Chart Amount Factor Value Annual cash Present Value of an Annuity of $ 235,000 X 4.3550 - $ 1,023,425 flow 1 Residual $ Present Value of 1 10,000 X 0.5640 - 5,640 value Present value of cash inflows $ 1,029,065 Immediate cash outflows 520,000 Net present value $ 509,065 Return to questi 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.) PV Factor 5.3350 Present Value 560,175 Select Chart Present Value of an Annuity of 1 Present Value of 1 Amount 105,000 20,000 $ Cash Flow Annual cash flow Residual value $ > > $ 0.4670 9,340 Present value of cash inflows Immediate cash outflows Net present value 569,515 380,000 189,515 $ Red Step by Step Solution
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