Project Y requires a $345,000 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	380,000
EXPENSES
Materials, labor, and overhead (except depreciation)	170,640
DepreciationMachinery	69,000
Selling, general, and administrative expenses	27,000

INCOME 113,760

1. 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.) net cash flow * present value of the annuity at 6%= Present value of net cash flow

year 1-6 ___________*____________________________=_____________________________

initial investment ____________________________

Net Present Value ____________________________

2. Compute Project Ys annual net cash flows.

3. Determine Project Ys payback period.

4. Compute Project Ys accounting rate of return.