# A net operating system for an existing machine is expected to cost \$660 0DO and have a useful life of six years . The system yields an incremental…

1. A new operating system for an existing machine is expected to cost \$660,000 and have a useful life of six years. The system yields an incremental after-tax income of \$195,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is \$18,600.

2. A machine costs \$540,000, has a \$33,800 salvage value, is expected to last eight years, and will generate an after-tax income of \$80,000 per year after straight-line depreciation.

A net operating system for an existing machine is expected to cost \$660 0DO and have a useful life of sixyears . The system yields an incremental after tax income of 5 195 , 100 each year after deducting itsstraight line depreciation The predicted sale agevalue of the system i S18 500 .A machine costs \$6 40 100 , has a \$3 600 sal arevalue is expected to last eight years , and will generateGeneral&quot; after tax income of 590 Coo per year after straight line depreciationAssume the company regpany requires a 120% rate of return on its investments . Cments . Compute the net presentvalue of each potential investment . IFVorst , FVofST FVorst PVAOfST and EVARIST The appropriatefactor ( s ) from the tables providerComplete this question by entering your answers in the tabs belowComplete this question b&quot; by entering your answers in the tabs belowRequired ARequired Bnew operatingperating system for an existing machine is expected to cost \$650 090 and have auseful life of six years . The system yields an incremental after – tax income of \$ 195 090 eatyear after deducting its straight – line depreciation . The predicted salvage value of the systemLIFTINGis \$18 500 . I Roundour answers to the nearest whole dollar . )-Cash FlowSelect ChartAmoun* / PV FactorPresenValueAnnual cashResidual valueNet present value