14 Required information Problem 11-2A Analyzing and computing payback period, accounting rate of return, and net present value LO P1, P2, P3 [The following information applies to the questions displayed below) Most Company has an opportunity to invest in one of two new projects Project Y requires a $330,000 investment for now machinery with a six-year life and no salvage value. Project Z requires a $330.000 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 FV of $1. PVA of $1. and FVA OS1 (Use appropriate factor(s) from the tables provided.) Project Project Sales $400,000 $320,000 Expen Direct materials 36.000 40,000 Direct Labor 80.000 48.000 Overhead including depreciation 144.000 Selling and administrative expenses 22.000 29,000 Total expenses 309.0DD 261.00 Pretax income 91.000 59.000 Income taxes (406) 36.400 23,600 Set incon $ 54,500 $ 35,400 144,000 Problem 11-2A Part 2 2. Determine each project's payback period. Payback Period Choose Deator Charte Numarator Project Project Payback Period Payback period 0 0