! Required information [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 $345,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $345,000 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 $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project Z $375,000 $300,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (36%) Net income 52,500 37,500 75,000 45,000 135,000 135,000 27,000 27,000 289,500 244,500 85,500 55,500 30,780 19,980 $ 54,720 $ 35,520 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 54,720 $ 35,520 $ Net income Depreciation expense Evnerted not cach flowe 2. Determine each project's payback period. Payback Period 1 Choose Denominator: Choose Numerator: = Payback Period Payback period 11 Project Y Project Z - 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: II Accounting Rate of Return Accounting rate of return Project Y Project Z 4. Determine each project's net present value using 6% 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 PV Factor II Present Value 11 Net present value Project 2 Chart values are based on: n = Select Chart Amount PV Factor Il Present Value 11 Net present value