Most Company has an opportunity to invest in one of two new projects. Project Y requires a $335,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $335,000 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		$	400,000			$	320,000
Expenses
Direct materials			56,000				40,000
Direct labor			80,000				48,000
Overhead including depreciation			144,000				144,000
Selling and administrative expenses			29,000				29,000
Total expenses			309,000				261,000
Pretax income			91,000				59,000
Income taxes (34%)			30,940				20,060
Net income		$	60,060			$	38,940

A. Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z B. 2. Determine each project's payback period. Payback Period Choose Numerator: I Choose Denominator: = Payback Period Payback period Project Y Project Z 3. Compute each project's accounting rate of return. Accounting Rate of Return ! Choose Denominator: Choose Numerator: Accounting Rate of Return = Accounting rate of return Project YT Project Z D. 4. Determine each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: n = Select Chart Amount PV Factor - Present Value Net present value Project Z Chart values are based on: Select Chart Amount * PV Factor Present Value Net present value