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. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

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IThe following information applies to the questions displayed below.j 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. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project Z 370,000 $296,000 Sales Expenses Direct materials 51,800 37.000 44,400 74,000 Direct labor overhead including depreciation 133,200 133,200 26,000 26,000 Selling and administrative expenses 285,000 240,600 Total expenses 85,000 55,400 Pretax income 19,944 30,600 Income taxes (36%) 54,400 35,456 Net income