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Please help me fill out this table completely Most Company has an opportunity to invest in one of two new projects. Project Y requires a
Please help me fill out this table completely
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 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 2 $370,000 $ 296,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (28%) Net income 51,800 74,000 133,200 26,000 285,000 85,000 23,800 37,000 44,400 133,200 26,000 240,600 55,400 15,512 $ 61,200 $ 39,888 4. Determine each project's net present value using 8% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: n = 8% Select Chart Amount PV Factor Present Value $ 0 = Net present value Project Z Chart values are based on: n = i = 8% Select Chart Amount PV Factor Present Value $ Net present valueStep by Step Solution
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