Required information Problem 11-2A Analysis and computation of payback period, accounting rate of return, and net present value LO P1, P2, P3 {The following information applies to the questions displayed below.) Most Company has an opportunity to invest in one of two new projects Project requires a $320,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $320,000 investment for new machinery with a three-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. V of $1. PVA of $1, and FVA of 5.1) (Use appropriate factor(s) from the tables provided.) Project Y Project Z $385,000 $300,000 Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 53, 900 77,000 138, 600 28,000 297,500 87,500 33, 250 $ 54,250 38,500 46,200 138,600 27,000 250, 300 57,700 21, 926 $ 35,774 FVA of $1 (Use appropriate factors) from the tables provided.) Proiect Y Pri $385,000 $3 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 53,900 77,088 138,600 28,888 297,500 87 508 33,25e 54, 258 Problem 11-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y $ 54,250 Project Z $ 35,774 Net income Depreciation expense Expected net cash flows