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 $320,000 Investment for new machinery with a four-year life and no salvage value. Project Z requires a $320,000 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 z $375, eee $300, eee Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 52,50 75,eee 135, eee 27,eee 289,5ee 85,500 32,492 $ 53,010 37,500 45, eee 135,00 27, eee 244,500 55,500 21,090 $ 34,410 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: = Payback Period Payback period Project Y Project Z 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 Project Y Project Z 1 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: Select Chart Amount x PV Factor = Present Value Net present value Project Z Chart values are based on: Select Chart Amount x PV Factor = Present Value Net present value