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 $340,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $340,000 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. Ey of $1. PVA of $1. and FVA of S1 (Use appropriate factor(s) from the tables provided.) Project Y Project z Sales $395,000 $316,000 Expenses Direct materials 55,300 39.500 Direct labor 79,000 47,488 Overhead including depreciation 142,200 142,200 Selling and administrative expenses 28,000 28,000 Total expenses 384,500 257,180 Pretax income 98,500 58,900 Income taxes (265) 23,530 15,314 Net Income $ 66,970 5 43,586 Problem 24-2A Part 2 2. Determine each project's payback period. Choose Numerator: Payback Period Choose Denominator: 1 Payback Period Payback period Project Y Project Z Problem 24-2A Part 3 3. Compute each project's accounting rate of return. Accounting Rate of Return 1 Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return 1 Project Y Project Z Problem 24-2A Part 4 4. Determine each project's net present value using 7% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Chart values are based on: i = Select Chart Amount PV Factor Present Value Net present value Project 2 Chart values are based on: n. Amount PV Factor Select Chart Present Value Net present value