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. 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.) Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (28%) Net income Project Y Project Z $375,000 $300,000 52,500 37,500 75,000 45,000 135,000 135,000 27,000 27,000 289,500 244,500 85,500 55,500 23,940 15,540 $ 61,560 $ 39,960 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 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. 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.) Sales Expenses Direct materials Project Y Project Z $375,000 $300,000 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 (28%) 23,940 15,540 Net income $ 61,560 $ 39,960 2. Determine each project's payback period. Project Y Project Z Payback Period Choose Numerator: I Choose Denominator: = Payback Period Payback period