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 $330,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $330,000 investment for new machinery with a five-year life and no salvage value. The two projects yleld 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 S1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project $400,000 $ 000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (408) Set income 56,000 80,000 144,000 29,000 309,000 91.000 36,400 $ 54,600 40,000 48,000 144,000 29.000 261,000 59.000 23,600 $ 35,400 Problem 11-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z