Required information Problem 24 2A (Algo) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 Skip to question The following information applies to the questions displayed below Project Y requires a $318,000 investment for new machinery with a four year life and no salvage value The project yields the following annual results Cash flows occur evenly within each year (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided ) Annual Amounts Project Y Sales of new product $ 355,000 Expenses Materials, labor, and overhead (except depreciation) 159,040 DepreciationMachinery 79,500 Selling, general, and administrative expenses 25,000 Income $ 91,460 Required 1 Compute Project Y 's annual net cash flows 2 DetermIne Project Y 's payback perlod 3 Compute Project Y 's accounting rate of return 4 Determine Project Y's net present value using 8 as the discount rate (Do not round Intermedlate calculations Round your present value factor to 4 decimals and final answers to the nearest whole dollar )

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Required information Problem 24-2A (Algo) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 Skip to

Required information

Problem 24-2A (Algo) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3

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[The following information applies to the questions displayed below.] Project Y requires a $318,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Annual Amounts	Project Y
Sales of new product	$ 355,000
Expenses
Materials, labor, and overhead (except depreciation)	159,040
DepreciationMachinery	79,500
Selling, general, and administrative expenses	25,000
Income	$ 91,460

Required: 1. Compute Project Y 's annual net cash flows. 2. DetermIne Project Y 's payback perlod. 3. Compute Project Y 's accounting rate of return. 4. Determine Project Y's net present value using 8% as the discount rate. (Do not round Intermedlate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)