Most Company has an opportunity to invest in one of two new projects. Project Y requires a $340,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $340,000 investment for new machinery with a five-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. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project Z

sales $ 355,000 $ 335,000

Expenses Direct materials 49,700 41,875

Direct labor 71,000 50,250

Overhead including depreciation 127,800 150,750

Selling and administrative expenses 25,000 30,000

Total expenses 273,500 272,875

Pretax income 81,500 62,125

Income taxes (38%) 30,970 23,608

Net income $ 50,530 $ 38,517

determine each projects net present value using 9% at the discount rate. Assume that cash flows occurs at each years end.(explanation please)