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Please fill out the table with a detailed explanation which is numerator etc. Most Company has an opportunity to invest in one of two new

Please fill out the table with a detailed explanation which is numerator etc.

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Most Company has an opportunity to invest in one of two new projects. Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $345,000 investment for new machinery with a ve-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash ows occur evenly throughout each year. {PV of $1, FV of $1, PVA of $1, and FVA of $1 )(Use appropriate factorts) from the tables provided.) Project I Project 2 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 (23%) 23,300 15,512 Net income $ 61,200 $ 39,388 3. Compute each project's accounting rate of return. -II -II__ -II__

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