Most Company has an opportunity to invest in one of two new projects Project Y requires a $340,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $340,000 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 Project | Sales $370,000 $296,000 Expenses Direct materials 51,800 37.ee Direct labor 74,000 44,400 Overhead including depreciation 133,200 133,200 Selling and administrative expenses 26,000 26,000 Total expenses 285,000 240,600 Pretax income 85.000 55,400 Income taxes (36%) 30,600 19,944 Net income $ 54,400 $ 35,456 Required: 1. Compute each project's annual expected net cash flows. Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z Project Y Project z $37 , $296 , Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (36%) Net income 51,800 37,000 74,000 44,400 133,200 133,200 26,000 26,000 285,000 240,600 85,000 55,400 30, 600 19,944 $ 54,400 $ 35,456 2. Determine each project's payback period Payback Period Choose Denominator: Choose Numerator: Payback Period Payback period 11 Project Y Project Z 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Denominator Choose Numerator: 1 Accounting Rate of Return Accounting rate of retum Project Y Project 2 4. Umine each project's not present value using 10% as the discount rote. Assume that cash flows occur at each year end (Round your intermediate calculations.) Project Chart values are based on: Select Chart Amount X PV Factor Present Value Net present value Project z Chart values are based on