Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $258,500. Project 2 requires an initial investment of $192,000. 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. (b) Compute payback period for each investment. Project 1 $ 140,000 Project 2 $ 120,000 75,000 30,000 18,000 $ 17,000 42,000 28,000 30,000 $ 20,000