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[The following information applies to the questions displayed below.] Project Y requires a $310,500 investment for new machinery with a five-year life and no salvage

[The following information applies to the questions displayed below.] Project Y requires a $310,500 investment for new machinery with a five-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Annual Amounts Project Y
Sales of new product $ 360,000
Expenses
Materials, labor, and overhead (except depreciation) 161,280
DepreciationMachinery 62,100
Selling, general, and administrative expenses 26,000
Income $ 110,620

2. Determine Project Ys payback period.

3. Compute Project Ys accounting rate of return.

4. Determine Project Ys net present value using 7% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)

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