Most Company has an opportunity to invest in one of two new projects. Project Y requires a $345,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $345.000 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 (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 $400,000 $320,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (30%) Net income 56,000 80,000 144,000 29,000 309,000 91,000 27,300 $ 63,700 40,000 48,000 144,000 29,000 261,000 59,000 17,700 $ 41,300 Problem 11-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z Problem 11-2A Part 2 2. Determine each project's payback period. Payback Period 1 Choose Denominator: Choose Numerator: Il Payback Period Payback period Project Y Project Z 1111