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 $334,500 investment for new machinery with a six-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	$ 395,000
Expenses
Materials, labor, and overhead (except depreciation)	176,960
DepreciationMachinery	55,750
Selling, general, and administrative expenses	28,000
Income	$ 134,290

Problem 24-2A (Algo) Part 1

Required: 1. Compute Project Ys annual net cash flows.

2. Determine Project Ys payback period.

3. Compute Project Ys accounting rate of return.

4. Determine Project Ys net present value using 6% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)

Required: 1. Compute Project Y's annual net cash flows. 2. Determine Project Y's payback period. 3. Compute Project Y's accounting rate of return. 4. Determine Project Y's net present value using 6% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)