Project Y requires a $316,500 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	$ 385,000
Expenses
Materials, labor, and overhead (except depreciation)	172,480
DepreciationMachinery	63,300
Selling, general, and administrative expenses	28,000
Income	$ 121,220

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

Annual amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Net cash flow 69 $ Income 385,000 172,480 63,300 28,000 121,220 69 Cash Flow 2. Determine Project Y's payback period. Project Y Numerator: Payback Period 1 Denominator: = II Payback Period 0 3. Compute Project Y's accounting rate of return. Project Y Numerator: Accounting Rate of Return Denominator: 1 = Accounting Rate of Return 4. Determine Project Y's net present value using 9% 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.) Years 1-6 Net present value Net Cash Flows Present Value x of Annuity at 9% Present Value of Net Cash Flows