Most Company has an opportunity to invest in one of two new projects. Project Y requires a $305,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $305,000 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. (FV of $1,PV of $1,FVA of $1andPVA of $1)(Use appropriate factor(s) from the tables provided.)

Project YProject ZSales$375,000$300,000ExpensesDirect materials52,50037,500Direct labor75,00045,000Overhead including depreciation135,000135,000Selling and administrative expenses27,00027,000Total expenses289,500244,500Pretax income85,50055,500Income taxes (34%)29,07018,870Net income$56,430$36,630