Required information [The following information applies to the questions displayed below.] Project Y requires a $346,500 investment for new machinery with a six-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 355,000 159,040 57,750 25,000 $ 113,210 2. Determine Project Y's payback period. Payback Period Numerator: Denominator: Initial investment Annual net cash flow Payback Period Project Y $ 346,500 / $ 170,960 = 2.03 years