Problem 25-2A 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 $335,000 Investment for new machinery with a four-year life and no salvage value. Project Z requlres a $335,000 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 stralght-line depreciation, and cash flows occur evenly throughout each year. (FV of $1. PV of $1. FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Project Z $355,000 284,000 Project Y Sales Expenses Direct materials Direct labor Overhead Including depreciation Selling and administrative expenses 49,700 71,000 127,800 25,000 35,500 42,600 127,800 25,000 Total expenses 273,500 230,900 Pretax Income Income taxes (32%) 81,500 26,080 53,100 16,992 Net Income $ 55.420 36,108