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 $320,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $320,000 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. FV of $1. PVA of $1. and FVA of $1 (Use appropriate factor(s) from the tables provided.) Sales Expenses Direet materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (348) Net Income Project Y Project $365,000 $292,000 51,100 36,500 73,000 43,800 131,400 101,400 26,000 26,000 281,500 237,700 83,500 50.300 28,390 18,462 $ 55, 110 $ 39,838 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Not income Depreciation expense Expected net cash flows 2. Determine each project's payback period. Payback Period Choose Numerator: Choose 1 Denominator: / Payback Period = Payback period Project Y Project Z 11 11 Net income $ 55,110 $ 35,838 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: 1 Choose Denominator: Accounting Rate of Return Accounting rate of return Project Y Project 2 Sed 4. Determine each project's net present value using 6% as the discount rate. Assume that cash flows occur at each year-end. ( your intermediate calculations.) of 4 Project Y Chart values are based on: 03:38:28 Select Chart Amount PV Factor Present Value Net present value Project Z Chart values are based on: n Select Chart Amount X PV Factor = Present Value Net present value