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Ched 0. A new operating system for an existing machine is expected to cost $854,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $110,000 b. A machine costs $580,000, has a $60,000 salvage value, is expected to last eight years, and will generate an after-tax income of $160,000 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.) Required A Required B A new operating system for an existing machine is expected to cost $854,000 and have a useful life of six years. The system yields an incremental after-tax income of $250,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $110,000. (Round your answers to the nearest whole dollar.) Select Chart Amount * PV Factor Present Value Cash Flow Annual cash flow Residual value Net present value Required B > CI Required A Required B A machine costs $580,000, has a $60,000 salvage value, is expected to last eight years, and will generate an after-tax income of $160,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Select Chart Amount * PV Facto Present Value Can Flow Annual cash flow Residual value Net present value Required A Prev 4 of 6 Next

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