Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $135,000. Project 2 requires an initial Investment of $98,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Project 1 $ 100,000 Project 2 $ 80,000 65,000 20,000 32,000 8,000 $7,000 $ 10,000 18,000 20,000 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. Required A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Project 1 Project 2 Income Cash Flow Income Cash Flow $ 100,000 $ 80,000 Expenses Materials, labor, and overhead (except depreciation) 65,000 32,000 Depreciation Machinery 20,000 18,000 Selling, general, and administrative expenses i 8,000 20,000 Income $ 7,000 $ 10,000 Net cash flow