Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $268,000. Project 2 requires an initial investment of $170,000. Project 1 $ 180,000 Project 2 $ 160,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Incone 85,000 40,000 28,000 $ 27,000 52,000 38,000 40,000 $ 30,000 (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment annual Amounts Project 1 Income Cash Flow 180,000 Project 2 Income Cash Flow 160,000 $ $ Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income 85,000 40,000 28,000 52,000 38,000 40,000 30,000 $ 27,000 $ Net cash flow 0 $ 0 Payback Period Denominator: Numerator: 1 Payback period 0 Project 1 Project 2 o 0