Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value.

The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1,

EV of S1, PVA of $1, and EVA of $1)

Note: Use appropriate factors) from the tables provided.

\begin{tabular}{lr} Annual Amounts & Project Y \\ Sales of new product & $350,000 \\ Expenses & 157,500 \\ Materials, labor, and overhead (except depreciation) & 87,500 \\ Depreciation-Machinery & 49,000 \\ Selling, general, and administrative expenses & $56,000 \\ \hline Income \end{tabular} 3. Compute Project Y 's accounting rate of return