Most Company has an opportunity to invest in one of two new projects Project Y requires a $325,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $325,000 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 z $350,000 $280,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (40%) Net incose 49,000 35,000 70,000 42,000 126,000 126,000 25,000 25,000 270,000 228,000 80,000 $2,000 32,000 20,800 $ 48,608 $ 31,280 Problem 24-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z Net income Depreciation expense 0 Expected net cash flows 2. Determine each project's payback period. Payback Period Choose Numerator Choose Denominator: 1 HD Payback Period Payback period 0 Project Y Project Z 11 0 3. Compute each project's accounting rate of return Accounting Rate of Retum Choose Numeratori Choose Denominator Accounting Rale o + Return Accounting rate of return Project Y Project Z + 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.) TY Chart values are based on n Select Chart Amount IV Factor VO Net present al Project 2 Chart values are based on: n Select Chart Amount PV Factor Present Value Net present value Identity four reason that an international online such as Southwestor Delta would invest in a project when an analysis using both payback period and not present value indicates it to be a poor investment Hunt Think about qualitative factor) Provide an example of an investment project that support your