Garcia Company can invest in one of two alternative projects. Project Y requires a $360,000 Initial Investment for new machinery with a four-year life and no salvage value. Project Z requires a $360,000 Initial Investment for new machinery with a three-year life and no salvage value. The two projects yleld 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 sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Complete this question by entering your answers in the tabs below. 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? Required 1 Required 2 Required 3 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? Project Y $ 400,000 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? Numerator: 190,000 90,000 50,000 $ 70,000 Required 4 1 1 Project z $ 500,000 Compute each project's payback period. If the company bases investment decisions solely on payback period, which project will it choose? Payback Period Denominator: Payback period 4

Garcla Company can invest in one of two alternative projects. Project Y requires a $360,000 intual investment for new machinery with a four-year ilfe and no salvage value. Project Z requires a $360,000 intial investment for new machinery with a three-year life and no salvage value. The two projects yleld the following annual results. Cash flows occur evenly within each year. (PV or S1, EV of S1, PVA of \$1. and EVA of 51) (Use appropriate factor(s) from the tabies provided.) Required: 1. Compute each project's annual net cash fows. 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 tetum. 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 wiil it choose? Complete this question by entering your answers in the tabs below. Garcla Company can invest in one of two alternative projects. Project Y requires a $360,000 intual investment for new machinery with a four-year ilfe and no salvage value. Project Z requires a $360,000 intial investment for new machinery with a three-year life and no salvage value. The two projects yleld the following annual results. Cash flows occur evenly within each year. (PV or S1, EV of S1, PVA of \$1. and EVA of 51) (Use appropriate factor(s) from the tabies provided.) Required: 1. Compute each project's annual net cash fows. 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 tetum. 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 wiil it choose? Complete this question by entering your answers in the tabs below