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[The following information applies to the questions displayed below.] Project Y requires a $350,000 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	$ 350,000
Expenses
Materials, labor, and overhead (except depreciation)	157,500
DepreciationMachinery	87,500
Selling, general, and administrative expenses	49,000
Income	$ 56,000

3. Compute Project Y's accounting rate of return. X Answer is complete but not entirely correct. Accounting Rate of Return Numerator: 1 Denominator: Annual income 1 Average investment Accounting rate of return Project Y $ 56,000 / $ 350,000 = 16.0 % 4. Determine Project Y's net present value using 8% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) X Answer is complete but not entirely correct. Net Cash Flows Present Value of Annuity at 8% = Present Value of Net Cash Flows Years 1-4 $ 143,500 3.3120 = $ 475,272 Initial investment 350,000 Net present value $ 125,272 X