Problem 11-2A (Static) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 [The following information applies to the questions displayed below.) Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within 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 $ 350,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 157,500 87,500 49,900 $ 56,000 Problem 11-2A (Static) Part 1 Required: 1. Compute project Y's annual net cash flows. Expected Income Revenues Expenses materials, lapor, and overneaa except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 157,500 87,500 49,000 $ 56,000 Problem 11-2A (Static) Part 1 Required: 1. Compute project Y's annual net cash flows. Expected Income Revenues Expenses Expected Net Cash Flow 0 Net cash flow Required information Problem 11-2A (Static) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 (The following information applies to the questions displayed below.] Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within 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 $ 350,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income 157,500 87,500 49,000 $ 56,000 Problem 11-2A (Static) Part 2 2. Determine Project Y's payback period. Payback Period Numerator: Denominator: Payback period Project Y Required information Problem 11-2A (Static) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 [The following information applies to the questions displayed below.) Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within 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 $ 350,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 157.500 87,500 49,900 $ 56,000 Problem 11-2A (Static) Part 3 3. Compute Project Y's accounting rate of return. Numerator: Accounting Rate of Return Denominator: 1 Accounting rate of return 0 Project Y
