Required information Problem 24-2A Analysis and computation of payback period, accounting rate of return, ond 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 $325,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $325.000 investment for new machinery with a four 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. PV of SI. PVA OLSI, and FVA 0151 (Use appropriate factor(s) from the tables provided.) Project Page $280,000 Expenses Direct materials 35,000 Direct labor 42.000 Overhead including depreciation 126,000 Selling and administrative expenses 25,000 25,000 Total expenses 228,000 Pretax income 52,000 Income taxes (2) 14,560 Net income $ 37,440 $350,000 70,000 126,000 220,000 30.000 22,400 $57,600 Problem 24-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project 2 ho 5 art 2 of 4 Problem 24-2A Part 2 2. Determine each project's payback period. nts Payback Period Choose Numerator: 1 Choose Denominator: eBook Payback Period Payback period 0 Print Project Y Project 2 References 0 ats BOOK Problem 24-2A Part 3 Print 3. Compute each project's accounting rate of return. eferences Choose Numerator: Accounting Rate of Return Choose Denominator Accounting Rate of Return Accounting rate of return Project Y Project Z of 4 Project Y Chart values are based on: Select Chart Amount X PV Factor - Present Value 11 sok int ences Net present value Project Z Chart values are based on: n Select Chart Amount PV Factor Present Value Required information 24 Net present value Project z Chart values are based on: ok n = Select Chart Amount PV Factor = Present Value ences Net present value