Homework Chapter 11 1 Required information Saved Part 1 of 4 3 points Skipped [The following information applies to the questions displayed below.] Project Y requires a $348,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: 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 Project Y $ 360,000 161,280 87,000 26,000 $ 85,720 eBook Print References Required: 1. Compute Project Y's annual net cash flows. Annual amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Net cash flow EA $ Income Cash Flow 360,000 161,280 87,000 26,000 $ 85,720 $ 0 He 2 ! Part 2 of 4 3 points eBook Print References Required information [The following information applies to the questions displayed below.] Project Y requires a $348,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: 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 Project Y $ 360,000 161,280 87,000 26,000 $ 85,720 2. Determine Project Y's payback period. Payback Period Numerator: Denominator: Initial investment / Annual net cash flow = Payback Period Project Y = 0