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Problem 2 4 - 2 A ( Algo ) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P

Problem 24-2A (Algo) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3
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[The following information applies to the questions displayed below.]
Project Y requires a $336,000 investment for new machinery with a five-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.)
Annual Amounts Project Y
Sales of new product $ 375,000
Expenses
Materials, labor, and overhead (except depreciation)168,000
DepreciationMachinery 67,200
Selling, general, and administrative expenses 27,000
Income $ 112,800
Problem 24-2A (Algo) Part 1
Required:
1. Compute Project Ys annual net cash flows.

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