Exercise 24-1 (Algo) Payback period, equal cash flows, and depreciation adjustment LO P1 Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $220,000, Project 2 requires an initial investment of $140,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. Project 1 Project 2 $ 156,000 $ 136,000 79,000 34,000 22,000 $ 21,000 46,000 32,000 34,000 $ 24,000 (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Expenses Project 1 Project 2 Income Cash Flow Income Cash Flow $ 156,000 $ 136,000 Materials, labor, and overhead (except depreciation) 79,000 Depreciation-Machinery 34,000 Selling, general, and administrative expenses 22,000 Income $ 21,000 Net cash flow 46,000 32,000 34,000 $ 24,000 Exercise 24-1 (Algo) Payback period, equal cash flows, and depreciation adjustment LO P1 Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $220,000. Project 2 requires an initial investment of $140,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment 79,000 Project 1 Project 2 $ 156,000 $136,000 46,000 34,000 32,000 22,000 34,000 $ 21,000 $ 24,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute payback period for each investment. Numerator: Project 11 Project 2 Payback Period Denominator: Payback period