Assessment 9: Making the Right Decision Worksheet Complete the following scenarios based on the following information. Crouch Corp. needs to decide which of two new projects to invest in. Project A is an investment in new machinery that will cost $264,000 and has a four-year life with no salvage value. Project B is an investment in new machinery that will cost $264,000 and has a three-year life with no salvage value Using straight-line depreciation, Crouch Corp. predicts that the two projects will yield the following annual results, with cash flows occurring evenly throughout the year Predicted Annual Results Project A$) Sales 275.000 Expenses Direct materials 38,500 Direct labor 55,000 Overhead including depreciation 99,000 Selling and administrative expenses 19,800 Total expenses 212,300 Pretax income 62,700 Income taxes (20%) 12,540 Net income 50,160 Project B (5) 220,000 27,500 33,000 99,000 19,800 179,300 40.700 8.140 32,560 Compute the annual expected net cash flows for each project. Determine the payback period for each project. Compute the accounting rate of return for each project. Determine the net present value using 6% as the discount rate