Information for two alternative projects involving machinery investments follows. Project $1$ requires an initial investment of $$256,500.$ Project $2$ requires an initial investment of $$174,000.$

Annual Amounts Project $1$ Project $2$

Sales of new product $ $160,000$ $ $140,000$

Expenses

Materials, labor, and overhead $($except depreciation$)80,00047,000$

Depreciation$$Machinery $35,00033,000$

Selling, general, and administrative expenses $23,00035,000$

Income $ $22,000$ $ $25,000$

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

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