Required information [The following information applies to the questions displayed below. Project Y requires a $306,000 investment for new machinery with a four-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.) Project Y $ 390,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 174,720 76,500 28,000 $ 110,780 3. Compute Project Y's accounting rate of return. Answer is complete but not entirely correct. Accounting Rate of Return Numerator: 1 Denominator: Annual income Average investment $ Accounting Rate of Return 126.8 % Project Y 110,780 1 87,360