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. FV of $1. PVA of $1, and EVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project 2 Sales $400,000 $320,000 Expenses Direct materials 56,000 40,000 Direct labor 80,000 48,000 Overhead including depreciation 144,000 144,000 Selling and administrative expenses 29,000 29,000 Tota expenses 309,000 261,000 Pretax income 91,000 59,000 Income taxes (404) 36,400 23,600 Net income $ 54,600 $ 35,400 Required: 1. Compute each project's annual expected net cash flows. $ Not Income Depreciation expense Project 54,600 $ 35.250 Project Z 35,400 115,000 Expected net cash flows 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. FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project z Sales $400,000 $320,000 Expenses Direct materials Direct labor 56,690 40,000 80,000 48,000 Overhead including depreciation 144,000 144,000 Selling and administrative expenses 29,000 29,000 Total expenses 309,000 261,000 Pretax income 91,000 59,000 Income taxes (404) 36,400 23,600 Net income $ 54,600 $ 35,400 2. Determine each project's payback period. Choose Numerator Cost of investment Payback Period Choose Denominator Annual net cash fow Project Y Project 2 Payback Period Payback period 0 . 0 Assement Tool 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 yleld 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 Si. and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project z Sales $400,000 $320,000 Expenses Direct materials 56,000 40,000 Direct labor 30,000 49,000 Overhead including depreciation 144,000 144,000 Selling and administrative expenses 29,000 29,000 Total expenses 309,000 261,000 Pretax income 91,000 59,000 Income taxes (409) 36,400 23,600 Net income $ 54,600 $ 35,400 3. Compute each project's accounting rate of return Choose Numerator: Accounting Rate of Return Choose Denominator Average total assets Annual average Investment Accounting Rate of Return Accounting rate of retum Project Y Project 2 0 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 yleld 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 Sales $400,000 $320,000 Expenses Direct materials 56,800 40,000 Direct labor 80,000 48,000 Overhead including depreciation 144,000 144,000 Selling and administrative expenses 29,000 29,000 Total expenses 309,000 261,000 Pretax income 91,000 59,000 Income taxes (409) 36,400 23,600 Net income $ 54,600 $ 35,400 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.) Projecte Chart values are based on: n Select Chart Amount PV Factor Present Value Required information Project Y Chart values are based on: n Select Chart Amount X PV Factor Present Value = Net present value Project z Chart values are based on: n 1 = Select Chart Amount X PV Factor Present Value Net present value