Garcia Company can invest in one of two alternative projects. Project Y requires a $440,000 Initial Investment for new machinery with a four-year life and no salvage value. Project Z requires a $498,000 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, EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Incone Required: 1. Compute each project's annual net cash flows. Project Y $490,000 Project Z $466,000 235,000 110,000 67,000 206,000 166,000 53,000 $ 78,000 $41,000 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 return. If the company bases investment decisions solely on accounting rate of return, which project will it choose? 4. Compute each project's net present value using 8% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute each project's annual net cash flows. Annual Amounts Sales of new product Project Y Project Z Income Cash Flow Income Cash Flow $ 490,000 $ 490,000 Expenses Materials, labor, and overhead (except depreciation) 235,000 206,000 Depreciation Machinery 110,000 100,000 Selling, general, and administrative expenses 67,000 53,000 Income $ 78,000 $ (425,000) Net cash flow) $ 490,000 $ 0 Garcia Company can invest in one of two alternative projects. Project Y requires a $440,000 initial investment for new machinery with a four-year life and no salvage value. Project Z requires a $498,000 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Required: 1. Compute each project's annual net cash flows Project Y $490,000 Project Z $466,000 235,000 110,000 67,000 206,000 166,000 53,000 $ 78,000 $ 41,000 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 return. If the company bases investment decisions solely on accounting rate of return, which project will it choose? 4. Compute each project's net present value using 8% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute each project's payback period. If the company bases investment decisions solely on payback period, which project will it choose? Project Y Project Z Numerator: Payback Period Denominator: If the company bases investment decisions solely on payback period, which project will it choose? Payback period 0 Garcia Company can invest in one of two alternative projects. Project Y requires a $440,000 initial investment for new machinery with a four-year life and no salvage value. Project Z requires a $498,000 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. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Required: 1. Compute each project's annual net cash flows. Project Y Project $490,000 $466,000 235,000 110,000 67,000 206,000 166,000 53,000 $ 78,000 $ 41,000 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 return. If the company bases investment decisions solely on accounting rate of return, which project will it choose? 4. Compute each project's net present value using 8% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? Complete this question by entering your answers in the tabs below. Help Sav Required 1 Required 2 Required 3 Required 4 Compute each project's accounting rate of return. If the company bases investment decisions solely on accounting rate of return, which project will it choose? Project Y Numerator Accounting Rate of Return Denominator: Project Z If the company bases investment decisions solely on accounting rate of retum, which project will it choose? Accounting rate of retum 0 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 return. If the company bases investment decisions solely on accounting rate of return. which project will it choose? 4. Compute each project's net present value using 8% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute each project's net present value using 8% 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 answers to the nearest whole dollar) Project Y Years 1-4 Present Value Net Cash Flows x of Annuity at 8% Present Value of Net Cash Flows Not present value Project Z Net Cash Flows X Present Value of Annuity at 8% Years 1-3 Present Value of Net Cash Flows S Net present value If the company bases investment decisions solely on net present value, which project will it choose?