o. A new operating system for an existing machine is expected to cost $667000 and...
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Accounting
o. A new operating system for an existing machine is expected to cost $667000 and have a useful life of six years. The system yields an incremental after-tax income of $195,000 each year after deducting its straightline depreciation. The predicted salvage value of the system is $55,000 b. A machine costs 5470.000, has a $38,000 salvage value, is expected to last eight years, and will generate an after-tax income of $105.000 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. EV_OCSI, PVA of S1, and EVA [ 5.1) (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 $067,000 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 $55,000. (Round your answers to the nearest whole dotar.) Select Chart Amount Cash Flow Annual cash flow Residual value PV Factor - Present Value S 0 0 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 Si. PVA of S1, and FVA OLS! (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 $667,000 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 $55,000. (Round your answers to the nearest whole dollar) Select Chart Amount PV Factor Present Value Annual cash flow Cash Flow 0 0 Residual value Net present value Required 8 > 5105,000 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 inve (PV of $1. FV of $1. PVA of S1, 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 $470,000, has a $38,000 salvage value, is expected to last eight years, and will generate an after-tax income of $105,000 per year after straight-line depreciation (Round your answers to the nearest whole dollar) Select Chort Amount X PV Factor Cash Flow Annual cash flow Residual value Present Value 0 0 Net present value A machine costs $400,000 and is expected to yield an after-tax net income of $9,000 each year. Management predicts this machine has a 10-year service life and a $80,000 salvage value, and it uses straight-line depreciation Compute this machine's accounting rate of return Accounting Rate of Return Choose Denominator Choose Numerator: Accounting Rate of Return Accounting rate of return




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