Factor Company is planning to add a new product to its line. To manufacture this product, the company needs fo buy a new machine at a $480,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of S1. EV of \$1. PVA of \$1, and EVA of \$1) (Use oppropriate factor(s) from the tables provided.) Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 78 . Complete this question by entering your answers in the tabs below. Determine income and net cash flow for each year of usis machine's life. Complete this question by entering your answers in the tabs below. Determine income and net cash flow for each year of this machine's life. Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Compute net present value for this machine using a discount rate of 7%. (Do not round intermediate calculations. Negarive amounts should be entered with a minus slgn. Round your present value factor to 4 decimats and final answers to the nearest whole dollar.) Table B.1* Preseat Valae of 1 p=1/(1+i)n \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline 1 & 0.9901 & 0.9804 & 0.9709 & 0.9615 & 0.9524 & 0.9434 & 0.9346 & 0.9259 & 0.9174 & 0.9091 & 0.8929 & 0.8696 & 1 \\ \hline 2 & 0.9803 & 0.9612 & 0.9426 & 0.9246 & 0.9070 & 0.8900 & 0.8734 & 0.8573 & 0.8417 & 0.8264 & 0.7972 & 0.7561 & 2 \\ \hline 3. & 0.9706 & 0.9423 & 0.9151 & 0.8890 & 0.8638 & 0.8396 & 0.8163 & 0.7938 & 0.7722 & 0.7513 & 0.7118 & 0.6575 & 3 \\ \hline 4 & 0.9610 & 0.9238 & 0.8885 & 0.8548 & 0.8227 & 0.7921 & 0.7629 & 0.7350 & 0.7084 & 0.6830 & 0.6355 & 0.5718 & 4 \\ \hline 5 & 0.9515 & 0.9057 & 0.8626 & 0.8219 & 0.7835 & 0.7473 & 0.7130 & 0.6806 & 0.6499 & 0.6209 & 0.5674 & 0.4972 & 5 \\ \hline 6 & 0.9420 & 0.5880 & 0.8375 & 0.7903 & 0.7462 & 0.7050 & 0.6663 & 0.6302 & 0.5963 & 0.5645 & 0.5066 & 0.4323 & 6 \\ \hline 7 & 09327 & 0.8706 & 0.8131 & 0.7599 & 0.7107 & 0.6651 & 0.6227 & 0.5835 & 0.5470 & 0.5132 & 0.4523 & 0.3759 & 7 \\ \hline 8 & 0.9235 & 0.8535 & 0.7894 & 0.7307 & 0.6768 & 0.6274 & 0.5820 & 0.5403 & 0.5019 & 0.4665 & 0.4039 & 0.3269 & 8 \\ \hline 9 & 0.9143 & 0.8368 & 0.7664 & 0.7026 & 0.6446 & 0.5919 & 0.5439 & 0.5002 & 0.4604 & 0.4241 & 0.3606 & 0.2543 & 9 \\ \hline 10 & 0.9053 & 0.8203 & 0.7441 & 0.6756 & 0.6139 & 0.5584 & 0.5083 & 0.4632 & 0.4224 & 0.3855 & 0.3220 & 0.2472 & 10 \\ \hline 11 & 0.8963 & 0.8043 & 0.7224 & 0.6496 & 0.5847 & 0.5268 & 0.4751 & 0.4289 & 0.3875 & 0.3505 & 0.2575 & 0.21+9 & 11 \\ \hline 12 & & 0.7885 & 0.7014 & 0.6246 & 0.5568 & 0.4970 & 0.4440 & 0.3971 & 0.3555 & 0.3186 & 0.2567 & 0.1560 & 12 \\ \hline 13 & 0.8787 & 0.7730 & 0.6810 & 0.6006 & 0.5303 & 0.4688 & 0.4150 & 0.3677 & 0.3262 & 0.2897 & 0.2292 & 0.1625 & 13 \\ \hline 14 & 0.8700 & 0.7579 & 0.6611 & 0,5775 & 0.5051 & 0.4423 & 0.3878 & 0.3405 & 0.2992 & 0.2633 & 0.2046 & 0.1413 & 14 \\ \hline 15: & 0M+13 & 0.7490 & 0.6419 & 0.5553 & 0,4810 & 0.4173 & 0.3624 & 0.3152 & 0.2745 & 0.2394 & 0.1827 & 0.1229 & 15 \\ \hline 16 & 0.5621 & 0.7214 & 0.6232 & 0.5339 & 0.4581 & 0.3936 & 0.3387 & 0.2919 & 0.2519 & 0.2176 & 0.1631 & 0.1009 & 16 \\ \hline 17 & 0.5444 & 0.7142 & 0.6050 & 0.5134 & 0.4363 & 0.3714 & 0.3166 & 0.2703 & 0.2311 & 0.1975 & 0.1456 & 0.003 & 17 \\ \hline 18. & 08360 & 0.7002 & 0.5874 & 0.4936 & 0,155 & 0.3503 & 0.2059 & 0.3502 & 0.2120 & 0.1799 & 0.1300 & 0.0508 & III \\ \hline 19 & 0.277 & 0.6664 & 0.5703 & 0.4746 & 03957 & 0.3305 & 0.2765 & 0.2317 & 0.1945 & 0.1615 & a.166: & 0.001 & 19 \\ \hline 20 & 0.1195 & 0.6730 & 05537 & 0.4564 & 0.3769 & 03115 & 0.2554 & 0.2145 & 0.1784 & 0.1486 & 0.1017 & 0.0611 & 20 \\ \hline 25 & 0.7793 & 0.6005 & 0.4776 & 0.3751 & 0,2953 & 0.2330 & 0.184? & 0.1460 & 0.1160 & 0.0023 & 0.0588 & a0304 & 23 \\ \hline 30 & 0.7419 & 0.551 & 0.4520 & 0.3053 & 0.2314 & 0.741 & 0.1314 & & 0.0254 & 00573 & 0.914 & 0019 & 10 \\ \hline 35 & 0.7089 & 03000 & & 02834 & 0.1813 & 0.1301 & 0.0937 & 0.0676 & 0.0490 & 00356 & 0.0189 & & 35 \\ \hline 40 & 0.677 & 0.4529 & 03066 & 0.2011 & 0.1420 & 00972 & 0.0068 & 0.0460 & 00318 & 0.0221 & 0.0607 & Q000? & 40 \\ \hline \end{tabular}
