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 four-year life and no salvage value. Project Z requires a $345,000 investment for new machinery with a three-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		$	370,000			$	296,000
Expenses
Direct materials			51,800				37,000
Direct labor			74,000				44,400
Overhead including depreciation			133,200				133,200
Selling and administrative expenses			26,000				26,000
Total expenses			285,000				240,600
Pretax income			85,000				55,400
Income taxes (26%)			22,100				14,404
Net income		$	62,900			$	40,996

Required: 1. Compute each project's annual expected net cash flows Project Y Project Z 2. Determine each project's payback period. Payback Period Choose Numerator Choose Denominator: Payback Period Payback period Project Y Project Z 3. Compute each project's accounting rate of return. Accounting Rate of Return Accounting Rate of Return Choose Numerator: Choose Denominator:- = | Accounting rate of return Project Y Project Z 4. Determine each project's net present value using 7% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: Select Chart Amount X PV Factor Present Value Net present value Project Z Chart values are based on: Select Chart Amount PV Factor l= Present Value x Net present value