**ACCOUNTING 2 QUESTION, 5 STARS FOR CORRECT ANSWER. THANKS!

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $310,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $310,000 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 FVA of $1) (Use appropriate factor(s) from the tables provided.)

	Project Y					Project Z
Sales		$	390,000				$	325,000
Expenses
Direct materials			54,600					40,625
Direct labor			78,000					48,750
Overhead including depreciation			140,400					146,250
Selling and administrative expenses			28,000					29,000
Total expenses			301,000					264,625
Pretax income			89,000					60,375
Income taxes (40%)			35,600					24,150
Net income		$	53,400				$	36,225

Compute each project