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 four-year life and no salvage value. Project Z requires a $320,000 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. EV of $1 PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project 2 Sales Expenses Direct materials $380,000 $304,000 53,200 38,000 Direct labor 76,000 45,600 Overhead including depreciation 136,800 136,800 Selling and administrative expenses 27,000 27,000 Total expenses 293,000 247,400 Pretax incom 87,800 56,600 Income taxes (32%) 27.840 18,112 Net income $ 59,160 $38,488