30-33

Required information [The following information applies to the questions displayed below) Project Y requires a $336,000 investment for new machinery with a four-year life and no salvage value. The project ylelds the following annual results. Cash flows occur evenly within each year. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project $ 350,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 156,800 84.ee 25,000 $ 84,200 Expected Income Revenues Expenses 0 Expected Net Cash Flow 0 Net cash flow 2. Determine Project Y's payback period. Payback Period 1 Denominator: Numerator: 11 Payback Period 0 Project Y = 3. Compute Project Y's accounting rate of return. Accounting Rate of Return Denominator: Numerator: Accounting Rate of Return 0 Project Y 4. Determine Project Y's net present value using 6% 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.) Project Chart values are based on: Select Chart Amount PV Factor Present Value 5 0 Net present value