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Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery with a six-year

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $350,000 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. (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 $ 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 (38%) 31,730 20,634
Net income $ 51,770 $ 33,666

What is the annual average investment for Project Y?

And for Project Z?

I need annual average investment to get ARR

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