! 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 $330,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $330,000 investment for new machinery with a three-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 $385,000 $308,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (328) Net income 53,900 77,000 138,600 28,000 297,500 87,500 28,000 $ 59,500 38,500 46,200 138,600 27,000 250, 300 57,700 18,464 39,236 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: / Choose Denominator: = Accounting Rate of Return Annual pre-tax income 1 Annual average investment Project Y Project 2 Accounting rate of return 0 0