Project Y requires a $327,000 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	$ 370,000
Expenses
Materials, labor, and overhead (except depreciation)	165,760
DepreciationMachinery	65,400
Selling, general, and administrative expenses	26,000
Income	$ 112,840

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

2. Determine Project Ys payback period.