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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project Z Sales $400,000 $320,000 Expenses 56,000 40,000 Direct labor 80,000 48,000 Overhead including depreciation 144,000 144,000 Selling and administrative expenses 29,000 29,000 Total expenses 309,000 261,000 Pretax income 91,000 59,000 Income taxes (36%) $ 58,240 $ 37,760 Direct materials 32,760 21,240 Net income Problem 11-2A Part 4 4. Determine each project's net present value using 9% 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 = Amount PV Factor Select Chart Present Value of 1 Present Value S 0 Present value of cash inflows Present value of cash outflows Net present value Project Z Chart values are based on: n- Amount PV Factor Present Value Select Chart Present Value of 1 = $ 0 Present value of cash outflows Present value of cash inflows Net present value