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All information provided, is all the information I was provided. Problem 25-2A Analysis and computation of payback period, accounting rate of return, and net present

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Problem 25-2A 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 $340,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $340,000 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 $1, and FVA 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 38,000 45,600 136,800 136,800 27,000 293,000 247,400 56,600 20,376 $ 55,680 36,224 53,200 76,000 27,000 87,000 Total expenses Pretax income Income taxes (36%) Net income 31,320 Problem 25-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z Net income Depreciation expense Expected net cash flows Problem 25-2A Part 2 2. Determine each project's payback period. Payback Period Choose Denominator: Choose Numerator: Payback Period -Payback period Project Y Project Z 0 0 Problem 25-2A Part 3 3. Compute each project's accounting rate of return. Accounting Rate of Return Accounting Rate of Return Choose Numerator: Choose Denominator: -Accounting rate of return Project Y Project Z 0 0 4. Determine each project's net present value using 6% as the discount rate. Assume t Round your intermediate calculations.) Project Y Chart values are based on: Select Chart Amount x PV FactorPresent Value Present Value of an Annuity of1 Present value of cash inflows Present value of cash outflows Net present value Project Z Chart values are based on: n= Select Chart Amount X PV FactorPresent Value Present Value of an Annuity of 1 Present value of cash inflows Present value of cash outflows Net present value

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