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Problem 25-1A Computation of payback period, accounting rate of return, and net present value LO P1, P2, P3 Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine a a $760,000 cost with an expected four-year life and a $48,000 salvage value. All sales are for cash, and all costs are out-of-pocket except for depreciation on the new machine. Additional information includes the following. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PV factor value to 4 decimal places.) Expected annual sales of new product Expected annual costs of new product $2,540,000 508,000 700,000 616,000 188,000 308 Direct labor Overhead (excluding straight-line depreciation on new machine Required: 1. Compute straight-line depreciation for each year of this new machine's life. 2. Determine expected net income and net cash flow for each year of this machine's life 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year 5. Compute the net present value for this machine using a discount rate of 4% and assuming that cash flows occur at each year-end. (Hint: Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required S K Prev 12 of 15l Next > Expected annual costs of new product 508,000 700,000 616,000 188,000 Direct materials Direct labor Overhead (excluding straight-line depreciation on new machine) Selling and administrative expenses 30% Required: 1. Compute straight-line depreciation for each year of this new machine's life. 2. Determine expected net income and net cash flow for each year of this machine's life. 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each yea 5 Compute the net present value for this machine using a discount rate of 4% and assuming that cash flows occu (Hint: Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below. Required 4 Required 5 Required 1Required 2 Required 3 Compute straight-line depreciation for each year of this new machine's life. Required 2> Required 4 Required 5 Required 1 Required 2Required 3 Determine expected net income and net cash flow for each year of this machine's life Net I 12 1 Required 2 Required 3Required 4 Required 5 Determine expected net income and net cash flow for each year of this machine's life Direct labor Direct materials Income tax expense Overhead excluding straight-line depreciation on new machine . Compute straight-line depreciation for each year of this new machine's life. 2. Determine expected net income and net cash flow for each year of this machine's life 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout eac 5, Compute the net present value for this machine using a discount rate of 4% and assuming that cash flows (Hint Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below Required 2Required 3 Required 1 Required 5 Required 4 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year Payback Period Choose DenominatorPayback Period Ch Numerator: -Payback period Required 2 Required 4 equired: Compute straight-line depreciation for each year of this new machine's life. . Determine expected net income and net cash flow for each year of this machine's life . Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year. compute the net present value for this machine using a discount rate of 4% and assuming that cash flows occur at Hint: Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year. Accounting Rate of Return Ch Choose Denominat Accounting Rate of Return ting rate of return K Required 3 Required 5 > 1. Compute straight-line depreciation for each year of this new machine's life 2. Determine expected net income and net cash flow for each year of this machine's life 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year 5, Compute the net present value for this machine using a discount rate of 4% and assuming that cash flows occur at each (Hint Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the net present value for this machine using a discount rate of 4% and assuming that cash flows occur at each year- end. (Hint: Salvage value is a cash inflow at the end of the asset's life.) (Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign.) Chart Values are Based on sh Flow Amountx PV FactorPresent Value Required 4