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 five-year life and no salvage value. Project Z requires a $345,000 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
Sales		$	380,000			$	304,000
Expenses
Direct materials			53,200				38,000
Direct labor			76,000				45,600
Overhead including depreciation			136,800				136,800
Selling and administrative expenses			27,000				27,000
Total expenses			293,000				247,400
Pretax income			87,000				56,600
Income taxes (38%)			33,060				21,508
Net income		$	53,940			$	35,092

2. Determine each projects payback period.