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Required information [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 $305,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $305,000 investment for new machinery with a three-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 of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project Z $390,000 $312,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 54,600 39,000 78,000 46,800 140,400 140,400 28,000 28,000 301,000 254,200 89,000 57,800 33, 820 21,964 $ 55, 180 $ 35,836 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z 2. Determine each project's payback period. Choose Numerator: Payback Period 1 Choose Denominator: / Payback Period Payback period II Il Project Y Project Z Il 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return Project Y Project 2 4. Determine each project's net present value using 7% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: n = = Select Chart Amount PV Factor = Present Value Net present value Project z Chart values are based on: n = i = Select Chart Amount PV Factor = Present Value II Net present value