2 Part 2 of 4 Required information [The following information applies to the questions displayed below.] Project Y requires a $312,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 385,000 172,480 78,000 28,000 $ 106,520 2. Determine Project Y's payback period. Project Y Numerator: Payback Period Denominator: = Payback Period = 3 Part 3 of 4 Required information [The following information applies to the questions displayed below.] Project Y requires a $312,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 385,000 172,480 78,000 28,000 $ 106,520 3. Compute Project Y's accounting rate of return. Accounting Rate of Return Project Y Numerator: Denominator: = Accounting Rate of Return ! 4 Part 4 of 4 Required information [The following information applies to the questions displayed below.] Project Y requires a $312,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 385,000 172,480 78,000 28,000 $ 106,520 4. Determine Project Y's net present value using 7% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Years 1-6 Net present value Net Cash Flows Present Value x of Annuity at 7% Present Value of Net Cash Flows