b.) Should Beyer accept the investment?

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 $300,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $300,000 investment for new machinery with a five-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 $365,000 $292,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (32%) Net income 51,100 73,000 131,400 26,000 281,500 83,500 26,720 $ 56,780 36,500 43,800 131,400 26,000 237,700 54,300 17,376 $ 36,924 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 return 0 Project Y Project Z 0 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.) Project Y Chart values are based on: n = Select Chart Amount PV Factor Present Value $ 0 Net present value Project Z Chart values are based on: n = i = Select Chart Amount PV Factor = Present Value $ Net present value Beyer Company is considering the purchase of an asset for $200,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $87,000 Year 2 $42,000 Year 3 $70,000 Year 4 $174,000 Year 5 $44,000 Total $417,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows 1 2 3 4 5 0 $ 0 Totals Amount invested Net present value S 0 Required A Required B >