a. A new operating system for an existing machine is expected to cost $633,000 and have a useful life of six years. The system yields an incremental after-tax income of $185,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $45,000. b. A machine costs $450,000, has a $34,000 salvage value, is expected to last eight years, and will generate an after-tax income of $95,000 per year after straight-line depreciation Assume the company requires a 13% 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. 75 Required A Required B A machine costs $450,000, has a $34,000 salvage value, is expected to last eight years, and will generate an after-tax income of $95,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Amount Cash Flow Annual cash flow Residual value * PV Factor Present Value 0 0 Net present value