Savod ter 24 Homework Check my work mode: This shows what is correct or incorrect for the work you have completed sof 4 6. A new operating system for an existing machine is expected to cost $735.000 and have a useful life of six years. The system yields an incremental after tax income of $215.000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $75.000 b. A machine couts $510,000 has a $16.000 salvage value is expected to last eight years, and will generate an after-tax income of $125,000 per year after straight line depreciation Assume the company requires a 10% rate of retum on its investments Compute the net present value of each potential investment, POLSI. EVOLSI. PVA DUSI, and EVA OS) (Use appropriate factors) from the tables provided.) Answer is not complete Complete this question by entering your answers in the tabs below. Required equired A new operating system for an existing machine is expected to cost $735,000 and have a useful life of six years. The system ylelds an incremental after tax income of $215,000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $75,000. (Round your answer to the nearest whole dollar) Cash Flow Annual cash flow Residual value Amium 215.000 75.000 Enctor 423053 0.5346 $ 5 Present Value of an Annuity of 1 Present Value of Present value of cash flows Immediate cash out Net present value $ Vahe 909,558 40.095 949,653 735,000 215 653 Required B >