Problem 11-2A Analysis and computation of payback period, accounting rate of return, and net present value LO P1, P2, P3 [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 $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.) NAIProject Y Project z $385,000 $308,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses 38,500 77,00046,200 138,600 138,600 27,000 297,500 250,300 57,700 21,926 $ 54,250 35,774 53,900 28,000 Total expenses Pretax income Income taxes (388) Net income 33,250 Problem 11-2A Part 2 2. Determine each project's payback period. Payback Period Choose Numerator Choose Payback Period Payback period Denominator: Project Y Project Z