Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $220,000. Project 2 requires an initial investment of $140,000.

Annual Amounts	Project 1	Project 2
Sales of new product	$ 156,000	$ 136,000
Expenses
Materials, labor, and overhead (except depreciation)	79,000	46,000
DepreciationMachinery	34,000	32,000
Selling, general, and administrative expenses	22,000	34,000
Income	$ 21,000	$ 24,000

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

(a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Compute each project's annual net cash flow. Complete this question by entering your answers in the tabs below. Compute payback period for each investment