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 $305,000 Investment for new machinery with a six-year life and no salvage value. Project Z requires a $305,000 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 $375,000 $300,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (30%) Net income 52,500 75, eee 135, eee 27,00 289,500 85,500 25,650 $ 59,850 37,500 45, eee 135, eee 27,000 244,500 55,500 16,658 $ 38,850 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z Net income Depreciation expense Expected net cash flows 2. Determine each project's payback period. Payback Period Choose Numerator: 1 Choose Denominator: Payback Period Payback period 1 = Project Y Project Z 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: 1 Choose Denominator: = Accounting Rate of Return Accounting rate of return 1 Project Y Project Z 4. Determine each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end. (Round your Intermediate calculations.) 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 = Select Chart Amount PV Factor Present Value Net present value