Most Company has an opportunity to invest in one of two new projects. Project Y requires a $335,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $335,000 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 Z $370,000 $296,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 51,800 74,000 133,200 26,000 285,000 85,000 32,300 $ 52,700 37,000 44,400 133,200 26,000 240,600 55,400 21,052 $ 34, 348 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z 2. Determine each project's payback period. Choose Numerator: Payback Period 1 Choose Denominator: / 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 1 = Accounting rate of return Project Y Project Z