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Garcia Company can invest in one of two altemative projects. Project Y requires a $460,000 initial investment for new machinery with a four-year life and

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Garcia Company can invest in one of two altemative projects. Project Y requires a $460,000 initial investment for new machinery with a four-year life and no salvage value. Project Z requires a $456,000 initial investment for new machinery with a three-year life and no salvage value. The fwo projects yieid the following onnual results. Cash fiows occur evenly within each year. (PV of St, EV of S1, PVA of 51, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute each project's annual net cash flows. 2. Compute each project's payback period. If the company bases investment decisions solely on payback period, which project will it choose? 3. Compute each project's accounting rate of retum. If the company bases investment decisions solely an accounting rate of return. which project will it choose? 4. Compute each project's net present value using 7 as the discount rate. If the company bases investment decisions solely on net present value, which project wit it choose? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Compute each project's annual net cash flows. Compute each project's payback period. If the company bases investment decisions solely on paybacik period, which project will it choose? &Required1 Compute each project's accounting rate of return. If the cornpany beses investment decisions solely on accounting rate of retum, which project Witlit choose? Compute each project's net present value using 7% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? (Do not round intermediate calculations. Round your present value factor to 4 decimals and final onswers to the nearest whole dollar.)

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