$ 52,160 $ 33,9 Problem 24-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z Required information Problem 24-2A Analysis and computation of payback period, accounting rate of return, and net present value LO P1, P2, P3 [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 $345,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $345,000 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 $1. PVA of 5), and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project 2 $355,000 $284,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (361) Net income 49,700 71,000 127,800 25,000 273,500 81,500 29.340 $ 52,160 35,500 42,600 127,800 25,000 230,900 53,100 19,116 $ 33,984 Prex 1 2 3 4 of 4 !!! Next > Required information 2. Determine each project's payback period. Payback Period Choose Numerator: 1 Choose Denominator: = Payback Period Payback period Project Y Project Z Problem 24-2A Part 3 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return Y Project Project Z L WERNE R CHILOTISI Required information Chart values are based on: Select Chart Amount x PV Factor = Present Value Net present value Project z Chart values are based on: nar Select Chart Amount x PV Factor Present Value