Tercer reports the following for one of its products, Direct materials standard (3 lbs. @ 52 per 1b.) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used 5 6 per finished unit 319,00 lbs. 70,000 units $527,000 AQ - Actual Quantity SQ - Standard Quantity AP Actual Price SP = Standard Price Compute the direct materials price and quantity vanances and classify each as favorable, unfavorable or no variance Actual Cost Standard Cost 0 0 0 0 0 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 six-year life and no salvage value. Project Z requires a $320,000 investment for new machinery with a five-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 EVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project z $350,000 $280, ea Sales Expenses Direct materials Direct Labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (26%) Net income 49,000 70,000 126,000 25,000 270,000 80,000 20, 800 $ 59,280 35,000 42,000 126,eee 25,000 228,000 52,080 13,520 $ 38,480 Required: 1. Compute each project's annual expected net cash flows. Project Y Project