needing 2 and 3

The following information applies to the questions displayed below) Most Company has an opportunity to invest in one of two new projects Project Y requires a $315,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $315.000 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project z $375,000 $300,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (345) Net Income 52,500 75,00 135.000 27. see 289.500 35. See 29.07 $ 56,430 37,500 45,000 135,00 27.000 244,500 55. See 18.870 $36.630 Required: 1. Compute each project's annual expected net cash flows. Project z 36,630 $ Net income Depreciation expense Expected net cash flows Project Y 56,430 $ 78,750 315,000 105,000 3 2. Determine each project's payback period. Payback Period 1 Choose Denominator: Choose Numerator: = Cost of investment $ Payback Period Payback period 0.36 years 0.23 years $ Project Y Project Z 56.4301 / 36,630 157,500 = 157.500 - S $