Problem 24-1A (Algo) Payback perlod, net present value, and net cash flow calculation LO P1, 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 at a $511.000 cost with an expected four-year life and a $20.000 salvage value. Additional annual information for this new product line follows. (PV of $1, FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Sales of new product $ 1,860,eee Expenses Materials, labor, and overhead (except depreciation) 1,588, eee Depreciation-Machinery 122,750 Selling, general, and administrative expenses 164, eea 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 8%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine income and net cash flow for each year of this machine's life. Cash Flow Income 1.800.000 S Annual amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) DepreciationMachinery Selling general, and administrative expenses Income 1,508.000 122.750 164,000 S 65.250 Net cash flow Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Payback Period Denominator: Numerator: 1 Payback Period Compute net present value for this machine using a discount rate of 8%. (Do not round intermediate calculations. Negative amounts should be entered with a minus sign. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Net Cash Present Value Present Value of Flows at 8% Net Cash Flows Years 1-4 Salvage value, year 4 Total Net present value =