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 $310,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $310,000 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 Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z Project Y Project Z $370,000 $296,000 51,800 37,000 74,000 44,400 133,200 133,200 26,000 26,000 285,000 240,600 85,000 55,400 32,300 21,052 $ 52,700 $ 34,348