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 four year life and no salvage value. Project Z requires a $350,000 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 51, PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project Z $350,000 $280,000 49,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38x) Net income 70,800 126,000 25,800 270,000 80,000 24,90 $ 56,089 42, eee 126,000 25,000 228,000 52,000 15,600 $ 36,400 Required: 1. Compute each project's annual expected net cash flows. Project $ 56,000 Project Z 36,400 Net income Depreciation expense (Expected not cast to 2. Determine each project's payback period Payback Period Choose Denominator: Annual net cash flow 1 Choose Numerator: Cost of investment 3 50,000 3 50,000 Payback Period Payback period Project Y Project Z 5 S 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Annual after tax net income Annual average investment $ 56,000 S 36,4001 Accounting Rate of Retur Accounting rate of return = Toject 2 13 4. Determine each project's net present value using 8% your intermediate calculations.) discount rate. Assume that cash flows occur at each year-end. (Round Project Y Chart values are based on: n Select Chart Amount Amount PV Factor - Present Value Net present value Project Chart values are based on: Select Chart Amount X PV Factor - Present Value Net present value