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 $350,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $350,000 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 $350,000 $280,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (36) Net income 49,000 70,000 126,000 25,000 270,000 80,000 24,000 $ 56,000 35,000 42,000 126,000 25,000 228,000 52,000 15,600 $ 36,400 Required: 1. Compute each project's annual expected net cash flows Project Y Project Z 2. Determine each project's payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period 0 Project Y Project Z 0 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Retum Accounting rate of retum = 1 Project Y Project Z 0