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please help Required information [The following information applies to the questions displayed below.] Most Company has an opportunity to invest in one of two new

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Required information [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 $320,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $320,000 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. EV of $1. PVA of $1. and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project Z $375,000 $300,000 Sales Expenses 52,500 37,500 Direct materials Direct labor 75,000 45,000 135,000 135,000 Overhead including depreciation Selling and administrative expenses 27,000 27,000 Total expenses 289,500 244,500 Pretax income 85,500 55,500 Income taxes (38%) 32,490 21,090 Net income $ 53,010 $ 34,410 4. Determine each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: na In 8% Select Chart x PV Factor Present Value Net present value Project Z Amount $ 0

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