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 four-year life and no salvage value. Project Z requires a $320,000 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 2 $355,000 $284,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (388) Net income 49, 700 71,000 127,800 25,000 273,500 81,500 30,970 $ 50,530 35,500 42,600 127,800 25,000 230,900 53,100 20,178 $ 32,922 2. Determine each project's payback period. Payback Period Choose Denominator: Choose Numerator: Payback Period Payback period 1 Project Y Project Z