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. Project 1 $ 144,000 Project 2 $ 124,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 76,000 31,000 19,000 $ 18,000 43,000 29,000 31,000 $ 21,000 (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 Sales Materials, labor, and overhead Net cash flow 144,000 76,000 220,000 $ Expected Net Cash Flow - Project 2 Sales $ Materials, labor, and overhead 124,000 43,000 167,000 Net cash flow $ 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. Project 1 $ 144,000 Project 2 $ 124,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 76,000 31,000 19,000 $ 18,000 43,000 29,000 31,000 $ 21,000 (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 Numerator: 1 Denominator: Net sales 1 Initial investment Payback period = 0 Project 1 Project 2 = 0