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 $350,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $350,000 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 $350, eee $280,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (30%) Net income 49,eee 35, eee 70,eee 42,00 126,eee 126,000 25,00 25,000 27e,eee 228, eee 88,8eel 52,000 24, eee 15,600 $ 56,800 $ 36,400 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 2. Determine each project's payback period. Payback Period Choose Numerator: 7 Choose Denominator: = Payback Period Payback period Project Y Project z = 0 ices 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return Project Y Project Z 4. Determine each project's net present value using 8% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: Select Chart Amount x PV Factor = Present Value Not presont value Project 2 Net present value Project 2 Chart values are based on: Select Chart Amount * PV Factor = Present Value Net present value