Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $148,500. Project 2 requires an initial investment of $102,000.

Annual Amounts	Project 1	Project 2
Sales of new product	$ 112,000	$ 92,000
Expenses
Materials, labor, and overhead (except depreciation)	68,000	35,000
DepreciationMachinery	23,000	21,000
Selling, general, and administrative expenses	11,000	23,000
Income	$ 10,000	$ 13,000

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

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $148,500. Project 2 requires an initial investment of $102,000. (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