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. (FV of $1, PV of $1, FVA of $1 and PVA 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 (28%)			23,380					15,204
Net income		$	60,120				$	39,096

Required: 1. Compute each project's annual expected net cash flows. Project Y $ 60,120 $ 39,096 Project Z Net income Depreciation expense Expected net cash flows Determine each project's payback period. Payback Period Choose Numerator Choose Denominator:Payback Period Cost of investment Annual net cash flow Payback period Project Y Project Z 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 Determine each project's net present value using 8% 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 PV Factor Present Value 0 Net present value Project Z Chart values are based on: Select Chart nt x PV Factor = Present Value 0 Net present value