4 Quiz Saved Help 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 five-year life and no salvage value. Project Z requires a $305,000 investment for new machinery with a four-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. EV of $1. PVA of S1, and EVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project z $380.000 $304,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (328) Net income 53,200 76.000 136,800 27,000 293,000 87,000 27.840 $ 59,160 38,000 45,600 136,800 27,000 247, 400 56,600 18,112 $ 38,488 3. Compute each project's accounting rate of return. Accounting Rate of Return 1 Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of retum Project Y Project 2