Most Company has an opportunity to invest in one of two new projects. Project Y requires a $330,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $330,000 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.) Project Y Project 2 $355,000 $284,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (346) Net income 49,700 71,000 127,800 25,000 273,500 81,500 27,710 $ 53,790 35,500 42,600 127,800 25,000 230, 900 53,100 18,054 $ 35,046 2. Determine each project's payback period. Answer is complete but not entirely correct. Payback Period Choose Numerator: Choose Denominator: Cost of investment Annual net cash flow $ 340,000 $ 121,790 = $ 340,000 $ 120,046 X - Payback Period Payback period 2.79 years 2.83 years Project Y Project 2 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 0 Project Y Project 2