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 five-year life and no salvage value. Project Z requires a $325,000 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 $380,000 $304,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (32%) Net income 53,200 76,000 136,800 27,000 293,000 87,000 27,840 $ 59,160 38,000 45,600 136,800 27,000 247, 400 56,600 18,112 $ 38, 488 Project Y Chart values are based on: n = 5 i = 9% Select Chart Amount PV Factor Present Value Present Value of 1 X $ 1 x x 1.0000 x = $ 1 Present value of cash inflows $ 1 Present value of cash outflows Net present value Project Z Chart values are based on: n = 8 i = 9% Select Chart Amount PV Factor Present Value Present Value of an Annuity of 1 $ 1 x x = $ 0 Present value of cash inflows Present value of cash outflows Net present value