Most Company has an opportunity to invest in one of two new projects Project Y requires a $315,000 investment - new machinery with a four-year life and no salvage value. Project Z requires a $315,000 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.) Project Y Project Z Sales $375,000 $300,000 Expenses Direct materials 52,560 37,500 Direct labor 75,000 45,000 Overhead including depreciation 135,000 135,000 Selling and administrative expenses 27,000 27, eee Total expenses 289,500 244, see Pretax income 85,500 55,500 29,07 Income taxes (34) 18,870 $ 56,430 $ 36,630 Net income Required: 1. Compute each project's annual expected net cash flows. Project z Project Y 81,500 Pretax income $ s Determine each project's payback period. Payback Period Choose Denominator: 1 Choose Numerator: = Payback Period Payback period 11 0 Project Y Project Z Il 0 3. Compute each project's accounting rate of return Accounting Rate of Return Choose Denominator: Choose Numerator: Annual after-tax net income Accounting Rate of Return Accounting rate of return Project Y Project z 0 4. Determine each project's net present value using 6% as the discount rate. Assume that cash flows occur at each year-end (Round your intermediate calculations.) Project Y Chart values are based on: n Select Chart Amount X PV Factor Present Value Net procent value Project 2 Chart values are based on: Net present value Project z Chart values are based on: n= Select Chart Amount PV Factor Present Value Net present value