Required informatio [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 $315,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $315,000 investment for new machinery with a four-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project 2 $380,000 $304,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses 38,000 45,600 136, 800 136,800 27,000 293,000 247,400 56,600 31,320 20,376 $55,680 36,224 53,200 76,000 27,000 87,000 Total expenses Pretax income Income taxes (36%) Net income Required: 1. Compute each project's annual expected net cash flows Project Y Project Z 2. Determine each project's payback period Payback Period Choose Denominator: Choose Numerator: Payback Period Payback period Project Y Project Z 0 3. Compute each project's accounting rate of return. Accounting Rate of Return Accounting Rate of Choose Numerator: Choose Denominator: Return Accounting rate of return 0 0 Project Y Project Z