Information for two alternative projects involving machinery investments follows. Project $1$ requires an initial investment of $$148,000.$ Project $2$ requires an initial investment of $$133,000.$

Annual Amounts Project $1$ Project $2$

Sales of new product $ $120,000$ $ $100,000$

Expenses

Materials, labor, and overhead $($except depreciation$)70,00037,000$

Depreciation$$Machinery $25,00023,000$

Selling, general, and administrative expenses $13,00025,000$

Income $ $12,000$ $ $15,000$

$($a$)$ Compute each project$$s annual net cash flow.

$($b$)$ Compute payback period for each investment.