Most Company has an opportunity to invest in one of two new projects. Project Y requires a $345,000 investment for new machinery with a four-year life and no salvage value.

Required information [The following information applies to the questions displayed below) Most Company has an opportunity to invest in one of two new projects. Project Y requires a $345.000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $345.000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. FV of $1. PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project z $400,000 $320,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (26%) Net income 56,000 40,000 80,000 48,000 144,000 144,000 29,000 29,000 309,000 261,000 91,000 59,000 23, 660 15, 340 $ 67,340 $ 43,660 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 2 Determine each project's payback period. Payback Period Choose Denominator: Choose Numerator: 1 Payback Period Payback period 0 Project Y Project Z = 0 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return 0 Project Y Project Z 0 4. Determine each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end (Round your Intermediate calculations. Project Y Chart values are based on: 7 = Select Chart Amount PV Factor Present Value = $ 0 Net present value Project 2 Chart values are based on: Select Chart Amount PV Factor Present Value $ 0 Net present value