Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $325,000 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 $385,000 $308,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (328) Net income 53,900 77,000 138,600 28.000 297,500 87,500 28,000 $ 59,500 38,500 46,200 138,600 27,000 250,300 57,700 18,464 $ 39,236 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 2. Determine each project's payback period. Payback Period Choose Numerator: 1 Choose Denominator: = = Payback Period Payback period Project Y Project Z 3. Compute each project's accounting rate of return. Accounting Rate of Return 1 Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return Project Y Project Z Project Y Chart values are based on: Select Chart Amount x PV Factor - Present Value Net present value Project Z Chart values are based on: Select Chart Amount X PV Factor = Present Value Net present value