s 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 $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Sales Expenses Direct materials Project Y Project Z $375,000 $300,000 52,500 37,500 Direct labor 75,000 45,000 Overhead including depreciation 135,000 135,000 Selling and administrative expenses 27,000 27,000 Total expenses 289,500 244,500 Pretax income 85,500 55,500 Income taxes (28%) 23,940 15,540 Net income $ 61,560 $ 39,960 3. Compute each project's accounting rate of return. Project Y Project Z Accounting Rate of Return Choose Numerator: I Choose Denominator: = Accounting Rate of Return Accounting rate of return 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 Net present value Project Z Chart values are based on: Select Chart Net present value n Amount PV Factor Present Value n j= Amount X PV Factor Present Value