Most Company has an opportunity to invest in one of two new projects. Project Y requires a $330,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $330,000 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		$	370,000			$	296,000
Expenses
Direct materials			51,800				37,000
Direct labor			74,000				44,400
Overhead including depreciation			133,200				133,200
Selling and administrative expenses			26,000				26,000
Total expenses			285,000				240,600
Pretax income			85,000				55,400
Income taxes (36%)			30,600				19,944
Net income		$	54,400			$	35,456

4. Determine each projects net present value using 7% 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 =	6
i =	7%
Select Chart	Amount t	x	PV Factor	=	Present Value
Present Value of an Annuity of 1		x		=	$
Net present value
Project Z
Chart values are based on:
n =
i =
Select Chart	Amount	x	PV Factor	=	Present Value
				=	$0
Net present value