Required information Problem 11-2A Analyzing and computing 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 Y requires a $300,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $300,000 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, FV of $1, PVA of $1, and CVA of $1 > (Use appropriate factor(s) from the tables provided.) Project Y Project z. $380,000 $384,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (30%) Net income 53,200 75, eee 136,800 27,000 293, oee 87,000 26,100 $ 60,900 38,000 45,500 136,800 27,000 247,400 56,600 16,980 $ 39,620 Problem 11-2A Part 4 4. Determine each project's net present value using 8% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Required information 4. Determine each project's net present value using 8% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: n i 896 Select Chart PV Factor Amount 135 900 x Present Value Present Value of an Annuity of 1 $ 0 Net present value Project 2 Chart values are based on: Select Chart Amount PV Factor Present Value Net present value