Garcia Company can invest in one of two alternative projects Project Y requires a $445,000 initial investment for new machinery with a four-year life and no salvage value. Project Z requires a $510,000 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 SI. FV of $1. PVA of S1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project $ 495,000 Project z $ 468,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-achinery Selling, general, and administrative expenses Income 240,000 111,250 69,000 574,750 208.000 170,000 54.000 $36,800 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 7% 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. 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. Expected Net Cash Flow - Project Y Net cash flow Expected Net Cash Flow - Project Z Net cash flow Required 2 > 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? Payback Period Numerator: Denominator Payback period Project Y Projectz If the company buses investment decisions solely on payback period, which project will it choose? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requlod 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? Accounting Rate of Return Denominator: Numerator: Accounting rate of return Project Y Project 2 If the company bases Investment decisions solely on accounting rate of return, which project will it choose? Required 2 Required 4 > Required 1 Required 2 Required 3 Required 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 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 Chart values are based on: n= Select Chart Amount PV Factor Present Value Not present value Project Z Chart values are based on: PIUJETE Chart values are based on: n 11 1 Select Chart Amount PV Factor Present Value Net present value If the company bases investment decisions solely on net present value, which project will it choose?