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 five-year life and no salvage value. Project Z requires a $340,000 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. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

	Project Y					Project Z
Sales		$	350,000				$	280,000
Expenses
Direct materials			49,000					35,000
Direct labor			70,000					42,000
Overhead including depreciation			126,000					126,000
Selling and administrative expenses			25,000					25,000
Total expenses			270,000					228,000
Pretax income			80,000					52,000
Income taxes (38%)			30,400					19,760
Net income		$	49,600				$	32,240

Required: 1. Compute each ect's annual expected net cash flows. Project Y Project Z