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Help me please and can you use a graph easy to explain. Most Company has an opportunity to invest in one of two new projects.

Help me please and can you use a graph easy to explain.

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $325,000 investment for new machinery with a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Project Y Project Z
Sales $ 370,000 $ 296,000
Expenses
Direct materials 51,800 37,000
Direct labor 74,000 44,400
Overhead including depreciation 133,200 133,200
Selling and administrative expenses 26,000 26,000
Total expenses 285,000 240,600
Pretax income 85,000 55,400
Income taxes (30%) 25,500 16,620
Net income $ 59,500 $ 38,780

5.

value: 2.00 points

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Required:
1.

Compute each projects annual expected net cash flows.

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6.

value: 2.00 points

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2.

Determine each projects payback period.

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7.

value: 2.00 points

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3.

Compute each projects accounting rate of return.

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8.

value: 2.00 points

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4.

Determine each projects net present value using 8% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.)

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