Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $175,500 Project 2 requires an initial investment of $120,000 Project 1 $ 124,000 Project 2 $ 104,000 Annual Amount Sales of new product Expenses Materiale, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 71,000 26,000 14.000 $ 13,000 38,000 24,000 26.000 $ 16,000 (a) Compute each project's annual net cash flows. (b) Compute payback period for each investment Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flows. XS 124,000 $ 71,000 195,000 $ Expected Net Cash Flow Project 1 Sales Materials, labor, and overhead Net cash flow Expected Net Cash Flow - Project 2 Sales Materials, labor, and overhead Net cash flow x $ XX 104,000 38,000 142,000 X $ Required a Required B > Required A Required Compute payback period for each investment. Numerator Net sales $ Payback Period Denominator: Initial investment 245,000 $ 49,000 175,000 $ 50.0003 Project 1 Project 2 Payback period 5.0 years 3.5 years