Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $350,000 investment for new machinery with a three-year life and no salvage value. Project Y Project Z Sales $ 350,000 $ 280,000 Expenses Direct materials 49,000 35,000 Direct labor 70,000 42,000 Overhead including depreciation 126,000 126,000 Selling and administrative expenses 25,000 25,000 Total expenses 270,000 228,000 Pretax income 80,000 52,000 Income taxes (30%) 24,000 15,600 Net income $ 56,000 $ 36,400 Required: 1. Compute each projects annual expected net cash flows. (Round your intermediate calculations.) 2. Determine each projects payback period. (Round your intermediate calculations and final answers to 2 decimal places.) 3. Compute each projects accounting rate of return