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, EV of $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Sales Expenses Direct materials. Project Y Project Z $360,000 $288,000 50,400 36,000 Direct labor 72,000 43,200 Overhead including depreciation. 129,600 129,600 Selling and administrative expenses 26,000 26,000 Total expenses 278,000 234,800 Pretax Income 82,000 53,200 Income taxes (32%) 26,240 17,024 Net income $ 55,760 $36,176 4. Determine each project's net present value using 7% 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 n= Amount x PV Factor Present Value 4. Determine each project's net present value using 7% 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 Present Value of an Annuity of 1 Present value of cash inflows. Present value of cash outflows Net present value Project Z Chart values are based on: Select Chart Present Value of an Annuity of 1 Present value of cash inflows Present value of cash outflows Net present value i nx n = Amount x PV Factor Present Value $ 0 5 (345,000) Amount X PV Factor Present Value $ 0 (345,000)