16 points Garcia Company can invest in one of two alternative projects. Project Y requires a $540,000 initial investment for new machinery with a four-year life and no salvage value. Project 2 requires a $504,000 initial investment for new machinery with a three-year life and no salvage value. The two projects yield the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA 131) Note: Use appropriate factor(s) from the tables provided. Annual Amounts Project Y Project 2 Sales of new product $ 490,000 $ 590,000 Expenses Materials, labor, and overhead (except depreciation) 208,000 218,900 Depreciation-Machinery 135,000 168,000 Selling, general, and administrative expenses 68.000 68,000 Income $ 79,009 $ 135,090 Requhed: 1. Compute each project's annual net cash flows. 2. Compute each project's payback period. If the company bases investment decisions solely on payback period, which project will it choose? 3. Compute each project's accounting rate of return. If the company bases investment decisions solely on accounting rate of return, which project will it choose? 4. Compute each project's net present value using 9% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute each project's annual net cash ows. Sales of new product $ 490,000 $ 490,000 Materials, labor, and overhead (except depreciation) 208,000 218,000 DepreciationMachinery 135,000 168,000 Selling, general, and administrative expenses 68,000 68,000 $ 79,000 $ (454,000) Required 2 > Required 1 Required 2 Required 3 Required 4 Project Y Project 2 If the company bases investment decisions solely on payback period, which project will it choose? Required 1 Required 2 Required 3 Required 4 Compute each project's accounting rate of return. If the company bases investment decisions solely on accounting rate of return, whicl' will it choose? - Accounting rate or return ProiectY --- Proieth --u_ If the company bases investment decisions solely on accounting rate of return, which project will it choose? _ Compute each project's net present value using 9% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? Note: Do not round intermediate calculations. Round your present value factor to 4 decimals and nal answers to the nearest whole dollar. I:I=I Net present value = I_H_ = Net present value If the company bases investment decisions solely on net present value, which project will it choose