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 six-year life and no salvage value. Project Z requires a $345,000 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
Sales		$	395,000			$	316,000
Expenses
Direct materials			55,300				39,500
Direct labor			79,000				47,400
Overhead including depreciation			142,200				142,200
Selling and administrative expenses			28,000				28,000
Total expenses			304,500				257,100
Pretax income			90,500				58,900
Income taxes (36%)			32,580				21,204
Net income		$	57,920			$	37,696

4. Determine each projects net present value using 10% as the discount rate. Assume that cash flows occur at each year-end.