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Posting again because my original one is wrong! pls help me out Most Company has an opportunity to invest in one of two new projects.

Posting again because my original one is wrong! pls help me out

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 four-year life and no salvage value. Project Z requires a $300,000 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 FVA of $1) (Use appropriate factor(s) from the tables provided.)

Project Y Project Z
Sales $ 385,000 $ 308,000
Expenses
Direct materials 53,900 38,500
Direct labor 77,000 46,200
Overhead including depreciation 138,600 138,600
Selling and administrative expenses 28,000 27,000
Total expenses 297,500 250,300
Pretax income 87,500 57,700
Income taxes (38%) 33,250 21,926
Net income $ 54,250 $ 35,774

1. Compute each projects annual expected net cash flows.

Project Y Project Z

2. Determine each projects payback period.

Payback Period
Choose Numerator: / Choose Denominator: = Payback Period
Cost of investment / Annual net cash flow = Payback period
Project Y $300,000 / = 2.00 years
Project Z $300,000 / = 1.50 years

3. Compute each projects accounting rate of return.

Accounting Rate of Return
Choose Numerator: / Choose Denominator: = Accounting Rate of Return
/ = Accounting rate of return
Project Y 0
Project Z 0

4. Determine each projects 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 =
i =
Select Chart Amount x PV Factor = Present Value
= $0
Net present value
Project Z
Chart values are based on:
n =
i =
Select Chart Amount x PV Factor = Present Value
= $0
Net present value

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