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Business, 24.12.2019 21:31 Epicgible8136

Compute the net present value of each potential investment. assume the company requires a 10% rate of return on its investments. (fv of $1, pv of $1, fva of $1 and pva of $1) (use appropriate factor(s) from the tables provided.)a. a new operating system for an existing machine is expected to cost $570,000 and have a useful life of six years. the system yields an incremental after-tax income of $270,000 each year after deducting its straight-line depreciation. the predicted salvage value of the system is $29,800.cash flow select chart amount x pv factor = present valueannual cash flow = residual value = net present value b. a machine costs $600,000, has a $37,700 salvage value, is expected to last eight years, and will generate an after-tax income of $84,000 per year after straight-line depreciation. cash flow select chart amount x pv factor = present valueannual cash flow = residual value =

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