Factor Company is planning to add a new product its line. To manufacture this product the company...

Factor Company is planning to add a new product its line. To manufacture this product the company needs to buy a new Machine at a $499,000 cost with an expected four-year life and a $15,000 salvage value. All sales are for cash. and all costs are out-of-pocket, except for depreciation on the new Machine Additional information includes the following. (FV of $1. PV of $1. FVA of $1 and PVA of $1) (Use appropriate factors) from the tables provided.)

Compute straight-line depreciation for each, year of this new machines life.

Determine expected net income and net cash tow for each, year of the is Mach ink's life.

Compute this machine's payback period, assuming that cash tows occur evenly throughout each year. Compute this machine's accounting rate of return, assuming that incurred is earned evenly throughout each year.

Compute the net present value for this machine using a discount rate of 7% and assuming that cash tows occur teach year-end. (Her vantage value Isaacs into at the end of the assets life.) (Do not round intermediate calculations.)