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 six-year life and no salvage value. Project Z requires a $350,000 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. (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 $390,000 $312,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (36%) Net income 54,600 78,000 140,400 28,000 301,000 89,000 32,040 $ 56,960 39,000 46,800 140,400 28,000 254,200 57,800 20,808 $ 36,992 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 2. Determine each project's payback period. Choose Numerator: Payback Period / Choose Denominator: 1 Payback Period Payback period = II Project Y Project Z = 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: / Choose Denominator: II Accounting Rate of Return / = Accounting rate of return Project Y Project Z 4. Determine each project's net present value using 7% 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 PV Factor = Present Value = Net present value Project z Chart values are based on: n = Select Chart Amount PV Factor Present Value Net present value