Most Company has an opportunity to invest in one of two new proiects. Proiect Y requires a $325,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $325,000 investment for new machinery with a four-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 factors) from the tables provided.)

Sales

Expenses

Direct materials

Direct labor

Overhead including depreciation

Selling and administrative expenses

Total expenses

Pretax income

Income taxes (28%)

Net income

Project Y Project Z

$360,000 $288,000

50,400

72,000

129,600

26. 0

278,000

82,000

22,960

$ 59,040

11048)

[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 $325,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $325,000 investment for new machinery with a four-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.) Required: 1. Compute each project's annual expected net cash flows. 2. Determine each project's payback period. 3. Compute each project's accounting rate of return. 4. Determine each project's net present value using 10% as the discount rate. Assume that cash flows occur at each year-end. (Round