Hi! Can you help me determine how to calculate the annual net cash flows for Project A? I have attached the document for reference. Thank you!

BUS-FP4061 - Managerial Accounting Principles Assessment 9: Making the Right Decision Worksheet Problems 1-4 Complete problems 1-4 based on the following scenario. Megacorp needs to decide which of two new projects to invest in. Project A is an investment in new machinery that will cost $750,000 and has a four-year life with no salvage value. Project B is an investment in new machinery that will cost $750,000 and has a three-year life with no salvage value. Using straight-line depreciation, Megacorp predicts that the two projects will yield the following annual results, with cash flows occurring evenly throughout the year. Predicted Annual Results Project A ($) Sales 700,000 Expenses: Direct materials 98,000 140,000 Direct labor Overhead including depreciation 252,000 Selling and administrative expenses 50,000 540,000 Total expenses Pretax income 160,000 Income taxes (30%) 48,000 Net income 112,000 Complete the problems below. Add answers in this template and show your work. Problem 1 Compute the annual expected net cash flows for each project. Project A Problem 2 Determine the payback period for each project. Problem 3 Compute the accounting rate of return for each project. Problem 4 Determine the net present value using 6% as the discount rate. ($) Input values Company name Tax rate Discount rate Investment Life of machinery (in years) Salvage value Predicted Annual Results Project B ($) 560,000 70,000 84,000 252,000 50,000 456,000 104,000 31,200 72,800 Sales Expenses: Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (30%) Net income Present value of $1 at 6% annuity for 4 years Present value of $1 at 6% annuity for 3 years Megacorp 30% 6% Project A Project B $ 750,000 $ 750,000 4 3 four three $0 $0 Predicted Annual Results Project A ($) Project B ($) 700,000 560,000 98,000 70,000 140,000 84,000 ng depreciation 252,000 ### istrative expenses 50,000 ### 540,000 456,000 160,000 104,000 48,000 31,200 112,000 72,800 nuity for 4 years nuity for 3 years 3.4651 2.6730