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 yleld 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 $365,000 $292,080 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (30%) Net income 51,180 73,080 131,400 26,000 281,500 83,580 25,050 $ 58,450 36,500 43,800 131,400 26,080 237, zee 54,300 16,290 $ 38,010 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z Net income Pretax income Sales Total expenses 2. Determine each project's payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period Project Y Project Z Accounts receivable Annual net cash flow Average total assets Cost of goods sold 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return 1 Project Y Project Z Accounts receivable Annual after-tax net income Annual average investment Annual pre-tax income 4. Determine each project's net present value using 8% 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 = i = Select Chart Amount PV Factor Present Value = Net present value Project z Chart values are based on: Select Chart Amount PV Factor Present Value = Net present value