[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 $315,000 Investment for new machinery with a five-year life and no salvage value. Project Z requires a $315,000 Investment for new machinery with a four-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 Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (32) Net income Project Y Project z $365,889 $292, eee 51,180 36,500 73,000 43,888 131,400 131,480 26,000 26,000 281,500 237,700 83,500 54,388 26,720 17,376 $ 56,780 $ 36,924 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 2 Determine each project's payback period. Payback Period 1 Choose Denominator: Choose Numerator: 11 II Payback Period Payback period 0 Project Y Project Z II 0 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: 1 Choose Denominator: = = Accounting Rate of Return Accounting rate of return 0 Project Y Project 2 0 4. Determine each project's net present value using 6% as the discount rate. Assume that cash flows occur at each year- end. (Round your intermediate calculations.) Project Y Chart values are based on: na = Select Chart Amount PV Factor Present Value Net present value Project Chart values are based on: no i = Select Chart Amount x PV Factor = Present Value = Net present value