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.

Required information [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 $330,000 investment for new machinery with a ve-year life and no salvage value. Project 2 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 straig ht-Iine depreciation, and cash ows 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 Sales $375,000 $300,000 Expenses Direct materials 52,500 37,500 Direct labor 75,000 45,000 Overhead including depreciation 135,000 135,000 Selling and administrative expenses 27,000 27,000 Total expenses 289,500 244,500 Pretax income 85,500 55,500 Income taxes (32%) 27,360 17,760 Net income $ 58,140 $ 37,740 Required: 1. Compute each project's annual expected net cash flows. deeded ddddddddd 2. Determine each project's payback period. Payback Period Choose Numerator: 1 Choose Denominator: Payback Period Payback period Project Y S 0 Project Z 03. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return Project Y 0 Project Z 04. Determine each project's net present value using 8% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Chart values are based on