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a. A new operating system for an existing machine is expected to cost $684,000 and have a useful life of six years. The system yields an incremental after-tax Income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value b. A machine costs $480,000, has a $40,000 salvage value is expected to last eight years, and will generate an after-tax income of $110,000 per year after straight-line depreciation Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment (PV of $1. FV of $1. PVA of S1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A new operating system for an existing machine is expected to cost $684,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $60,000. (Round your answers to the nearest whole dollar) Cash Flow Select Chart Amount * PV Factor - Present Value Annual cash flow Prosent Value of an Annuity of 1 $ 304,000 $ 0 Residual valuje Present Value of 1 0 Net present value RA Required B > a. A new operating system for an existing machine is expected to cost $684,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $60,000. b. A machine costs $480,000 has a $40,000 salvage value, is expected to last eight years, and will generate an after-tax income of $110,000 per year after straight-line depreciation Assume the company requires a 10% 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $480,000, has a $40,000 salvage value, is expected to last eight years, and will generate an after-tax income or $110,000 per year after straight line depreciation (Round your answers to the nearest whole dollar) Select Chart Amount Cash Flow Annual cash flow Rosidual value X PV Factor - Present Value $ 0 0 Not present Value