Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $175,500, Project 2 requires an initial investment of $120,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. Project 1 $ 124,000 Project 2 $ 104,000 71,000 26,000 38,000 24,000 14,000 26,000 $13,000 $ 16,000 (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Project 1 Project 2 Income: Cash Flow Income Cash Flow $ 124,000 $ 0 $ 104,000 71,000 o 38,000 26,000 26,000 24,000 14,000 26,000 13 16 000 Complete this question by entering your answers in the tabs below. Required A Required B 04:33:19 Compute each project's annual net cash flow. Annual Amounts Book Print Sales of new product ferences Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Net cash flow Project 1 Project 2 Income Cash Flow Income Cash Flow $ 124,000 $ 0 $ 104,000 71,000 0 38,000 26,000 26,000 24,000 14,000 26,000 $ 13,000 $ 16,000 $ (26,000) $ 0 Required B 3:07 Materials, labor, and overhead (except depreciation) 71,000 Depreciation-Machinery 26,000 38,000 24,000 Selling, general, and administrative expenses 14,000 26,000 $13,000 $ 16,000 Income (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. bk Required A Required B ht encies Compute payback period for each investment. Numerator: Payback Period Denominator: Initial investment Annual net cash flow Project 1 $ 175.500 1 39,000 Payback period 4.5 years Project 2 $ 120,000 1 $ 40,000 3.0 years