Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $258,500. Project 2 requires an initial investment of $192,000. Annual Amounts Project 1 Project 2 Sales of new product $ 140,000 $ 120,000 Expenses Materials, labor, and overhead (except depreciation) 75,000 42,000 DepreciationMachinery 30,000 28,000 Selling, general, and administrative expenses 18,000 30,000 Income $ 17,000 $ 20,000 (a) Compute each projects annual net cash flow. (b) Compute payback period for each investment.

Compute each project's annual net cash flow. Compute payback period for each investment