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Garcia Company can invest in one of two alternative projects. Project Y requires a $420,000 initial investment for new machinery with a four-year life and

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Garcia Company can invest in one of two alternative projects. Project Y requires a $420,000 initial investment for new machinery with a four-year life and no salvage value. Project Z requires a $432,000 initial Investment for new machinery with a three-year life and no salvage value. The two projects yleld the following annual resuits. Cash fows occur evenly within each year .PV of \$1. FV of \$1. PVA of \$1. and EVA of \$1) (Use opproprlate factor(s) from the tables provided.) Requlred: 1. Compute each project's annual ner cash flows. 2. Compute eoch project's payback period. if the company bases investment decistons solely on payback period. which project witr it choose? 3. Compute each project's accounting rate of retum. If the company bases investment decislons solely on accounting rate of retum. which project wili 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 wil it choose? Compute each project's annual net cash flows. \begin{tabular}{|l|l|l|l|} \hline Required 1 & Required 2 Required 3 Required 4 \\ \hline \end{tabular} Compute each project's payback period. If the company bases investment decisions solely on payback period, which project will it choose? 4. Required 1 Required 3> Compute each project's accounting rate of retum. If the company bases investment decisions solely on accounting rate of ceturn, which project will it 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 answers to the nearest whole dollar.)

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