10 Required information The following information applies to the questions displayed below Part 1 of 4 Most Company has an opportunity to invest in one of two new projects. Project Y requires a $340,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $340,000 investment for new machinery with a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. EV of $1. PVA of $ tables provided.) points 1. and FVA of $1) (Use appropriate factor(s) from the eBook project Y Project z 395,000 $316,000 Sales Expenses Print Direct materials Direct labor Overhead including depreciation Selling and administrative expenses 55,300 39,500 79,00047,400 142,200 142,200 28,000 28,000 References Total expenses Pretax income Income taxes (36%) Net income 304,500257,100 58,900 21,204 57,920 37,696 90,500 32,580 Required: 1. Compute each project's annual expected net cash flows. Print Project YProject Z References Print 2. Determine each project's payback period. Payback Period References Choose Denominator:Payback Period Payback period Choose Numerator: Project Y Project Z Print 3. Compute each project's accounting rate of return. Accounting Rate of Return ferences Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting rate of return Project Y Project Z 13 4. Determine each project's net present value using 8% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Part 4 of 4 roject Y Chart values are based on: na .25 points Select Chart Amount |x PV Factor |= | Present Value eBook Print Net present value References Chart values are based on: elect Chart Amount x PV FactorPresent Value Net present value