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 $335,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $335.000 investment for new machinery with a three-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 S1 PVA of Si, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project Project Sales $360,000 $200,000 Expenses Direct materials 50,400 36,000 Direct labor 72,000 43,200 Overhead including depreciation 129,600 Selling and administrative expenses 26,000 26,000 Total expenses 278,000 234,800 Pretax income 82,000 53,200 Income taxes (286) 22,960 14,096 $ 59,040 $ 33,304 129,600 Net income Required: 1. Compute each project's annual expected net cash flows Project Y Project 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 $335,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $335,000 investment for new machinery with a three-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 S1, PVA of S1 and FVA of S1 (Use appropriate factor(s) from the tables provided.) Project Y Project 2 Sales $360,000 $280,000 Expenses Direct materials 50,400 36,000 Direct labor 72,000 43,200 Overhead including depreciation 129,600 129,600 Selling and administrative expenses 26.000 26,000 Total expenses 228,000 234,800 Pretax income 82,000 53,200 Income taxes (20%) 22,960 Net income $ 59,010 $ 38,304 14,896 2. Determine each project's payback period. Choose Numerator Payback Period 1 Choose Denominator Payback Period Payback period Project Project 2 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 $335,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $335,000 investment for new machinery with a three-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 Sales $360,000 $288,000 Expenses Direct materials Direct labor Overhead including depreciation 129,600 Selling and administrative expenses Total expenses 275,000 234,800 53,200 Income taxes (28%) 22,960 14.896 50,400 72,000 36,000 43,200 129,600 26,000 26,000 Pretax income 82,000 Net Income $ 59,040 $33,304 3. Compute each project's accounting rate of return Accounting Rate of Return 1 Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return 1 Project Y Project 2 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 requires a $335.000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $335,000 investment for new machinery with a three-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. EV of S1, PVA of 51 and EVA of 51 (Use appropriate factor(s) from the tables provided.) Project Project 2 Sales $360,000 $288,000 Expenses Direct materials 50,400 36,000 Direct labor 72,000 43,200 Overhead including depreciation 129,600 129,600 Selling and administrative expenses 26.000 26,000 Total expenses 234,800 Pretax income 82.000 $3,200 Income taxes (28%) 22,960 14,396 Net Income $ 59,00 33,304 278.000 4. Determine each project's net present value using 8% as the discount rate. Assume that cash tows occur at each year-end (Round your intermediate calculations.) Project Y Chart values are based on Select Chart Amount x py Factor Present Value Net prosent value 4. Determine each project's net present value using 8% as the discount rate. Assume that cash flows your intermediate calculations.) Project Y Chart values are based on: no Select Chart Amount X PV Factor Present Value Net present value Project Z Chart values are based on: n Select Chart Amount X PV Factor Present Value Net prosent value