Most Company has an opportunity to invest in one of two new projects. Project Y requires a $300,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $300,000 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		$	360,000			$	288,000
Expenses
Direct materials			50,400				36,000
Direct labor			72,000				43,200
Overhead including depreciation			129,600				129,600
Selling and administrative expenses			26,000				26,000
Total expenses			278,000				234,800
Pretax income			82,000				53,200
Income taxes (30%)			24,600				15,960
Net income		$	57,400			$	37,240

Payback Period
	Choose Numerator:	/	Choose Denominator:	=	Payback Period
		/		=	Payback period
Project Y				=	0
Project Z				=	0