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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 five-year life and no salvage value. Project Z requires a $350,000 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. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

	Project Y					Project Z
Sales		$	370,000				$	296,000
Expenses
Direct materials			51,800					37,000
Direct labor			74,000					44,400
Overhead including depreciation			133,200					133,200
Selling and administrative expenses			26,000					26,000
Total expenses			285,000					240,600
Pretax income			85,000					55,400
Income taxes (36%)			30,600					19,944
Net income		$	54,400				$	35,456

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: 6% x PV Factor Select Chart Amount Present Value E 0 124,400 x Present Value of an Annuity of 1 Present value of cash inflows Present value of cash outflows Net present value Project Z Chart values are based on: 6% Select Chart Amount x PV Factor Present Value E S 0 Present Value of an Annuity of 1 122,956 x Present value of cash inflows Present value of cash outflows Net present value