Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $320,000 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 Sales $ 365,000 $ 292,000 Expenses Direct materials 51,100 36,500 Direct labor 73,000 43,800 Overhead including depreciation 131,400 131,400 Selling and administrative expenses 26,000 26,000 Total expenses 281,500 237,700 Pretax income 83,500 54,300 Income taxes (36%) 30,060 19,548 Net income $ 53,440 $ 34,752

Required: 1. Compute each projects annual expected net cash flows.