Information for two alternative projects involving machinery investments follows. Project $1$ requires an initial investment of $$245,000.$ Project $2$ requires an initial investment of $$175,000.$

Annual Amounts Project $1$ Project $2$

Sales of new product $ $144,000$ $ $124,000$

Expenses

Materials, labor, and overhead $($except depreciation$)76,00043,000$

Depreciation$$Machinery $31,00029,000$

Selling, general, and administrative expenses $19,00031,000$

Income $ $18,000$ $ $21,000$

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

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