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 $345,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $345,000 investment for new machinery with a five-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 2 $350,000 $280,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 49,000 70,000 126,00 25,000 270, eee 8e, eee 30, 400 $ 49,600 35,000 42,800 126,000 25,000 228, eee 52,800 19,760 $ 32, 240 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z 2. Determine each project's payback period. Payback Period Choose Denominator: Choose Numerator: Il Payback Period Payback period 0 Project Y Project Z 0 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 0 1 Project Y Project Z 0 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: i = Select Chart Amount PV Factor Present Value $ 0 Net present value Project z Chart values are based on: Net present value Project 2 Chart values are based on: n = Select Chart Amount X PV Factor IL Present Value $ 0 Net present value