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5 Required information Problem 25-2A value LO P1, P2, P3 Analysis and computation of payback period, accounting rate of return, and net present The following

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5 Required information Problem 25-2A value LO P1, P2, P3 Analysis and computation of payback period, accounting rate of return, and net present The following information applies to the questions displayed below. 3.33 Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $325,000 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. FV of S1. PVA of St. and EVA of S ) (Use appropriate factorfs) from the tables provided.) Sales $360,000 $288,000 Direct labor overhead including depreciation 50,400 36,000 72,000 43,200 129,600 129,600 26,000 26,000 278.000 234.800 82,000 53,200 29,520 19.152 52,480 34,048 Total expenses Income taxes (36) Problem 25-2A Part 4 4 Determine each project's net present value using 8% as the discount rate. Assume that cash flows occur at each year-end (Round your intermediate calculations.) PrevS of 15 Next

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