Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $172,000. Project 2 requires an initial investment of $110,000.

Annual Amounts	Project 1	Project 2
Sales of new product	$ 132,000	$ 112,000
Expenses
Materials, labor, and overhead (except depreciation)	73,000	40,000
DepreciationMachinery	28,000	26,000
Selling, general, and administrative expenses	16,000	28,000
Income	$ 15,000	$ 18,000

(a) Compute each projects annual net cash flows. (b) Compute payback period for each investment.

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $172,000. Project 2 requires an initial investment of $110,000. Project 1 $ 132,000 Project 2 $ 112,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 73,000 28,000 16,000 $ 15,000 40,000 26,000 28,000 $ 18,000 (a) Compute each project's annual net cash flows. (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 flows. Expected Net Cash Flow - Project 1 Net cash flow Expected Net Cash Flow - Project 2 Net cash flow Band R Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $172,000. Project 2 requires an initial investment of $110,000. Project 1 $ 132,000 Project 2 $ 112,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) DepreciationMachinery Selling, general, and administrative expenses Income 73,000 28,000 16,000 $ 15,000 40,000 26,000 28,000 $ 18,000 (a) Compute each project's annual net cash flows. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Required A Required B Compute payback period for each investment. Payback Period Denominator: Numerator: = Payback period 0 Project 1 Project 2 = 0