Garca Company can invest in one of two alternative projects. Project Y requires a $425,000 initial investment for new machinery with a four-year life and no salvage value. Project Z requires a $462,000 initial investment for new machinery with a three-year life and no salvage value. The two projects yield the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Project Y Project Z Sales of new product $ 475,000 $ 440,000 Expenses Materials, labor, and overhead (except depreciation) 220,000 200,000 DepreciationMachinery 106,250 154,000 Selling, general, and administrative expenses 61,000 50,000 Income $ 87,750 $ 36,000 Required: 1. Compute each projects annual net cash flows. 2. Compute each projects payback period. If the company bases investment decisions solely on payback period, which project will it choose? 3. Compute each projects accounting rate of return. If the company bases investment decisions solely on accounting rate of return, which project will it choose? 4. Compute each projects net present value using 6% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose?