Required information Problem 24-2A 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 $310,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $310,000 investment for new machinery with a five-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 $i, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project z $360,000 $288,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (36%) Net income 50,400 72,000 129,600 26,000 278,000 82,000 29,520 $ 52,480 36,000 43, 200 129,600 26,000 234, 800 53,200 19,152 $ 34,048 Problem 24-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z Payback Period Choose Denominator: Choose Numerator: Payback Period Payback period 1 Project Y Project 2 Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return - Project Y Project 2 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 Select Chart Amount X PV Factor Present Value Net present value Project 2 Chart values are based on: Select Chart Amount PV Factor Present Value Net present value