Champion Real Property has a decision to make between two property investment alternatives. The company requires a $10\%$ return on investment. Predicted data are provided below:

Property Y Property Z

Cost of property $$600,000$ $$672,000$

After$-$tax income per year $40,00043,000$

Depreciation expense per year $100,000112,000$

Estimated useful life $6$ years $6$ years

The present value factor of an annuity for $6$ years at $10\%$ interest is $4\mathrm{.}3553.$

What is the Annual Net Cash Flow for Property Y$?$

What is the Annual Net Cash Flow for Property Z$?$

What is the Present Value of Net Cash Flows for Property Y$?$

What is the Present Value of Net Cash Flows for Property Z$?$

What is the Net Present Value for Property Y Investment?

What is the Net Present Value for Property Z Investment?

Calculate the Profitability Index for Property Y

Calculate the Profitability Index for Property Z

Determine which investment property Champion will select based on their net present values and profitability indexes.