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 $310,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $310,000 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 2 $375,000 $300,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 52,500 75,000 135,000 27,000 289,500 85,500 32,490 $ 53,010 37,500 45,000 135,000 27,000 244,500 55,500 21,090 $ 34,410 4. Determine each project's net present value using 10% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: i = Select Chart Present Value of an Annuity of 1 10% Amount 1x PV Factor = 3.1699 = Present Value $ $ Present value of cash inflows Present value of cash outflows Net present value Proiect 7 Project 2 Chart values are based on: n = 10% Amount x PV Factor = Present Value Select Chart Present Value of an Annuity of 1 1 Present value of cash inflows Net present value