Question: any help with this 4 step process? Required information Problem 24-2A Analyzing and computing payback period, accounting rate of return, and net present value LO



any help with this 4 step process? Required information Problem 24-2A Analyzing and computing payback period, accounting rate of return, and net present value LO P1, P2, P3 [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 $305,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $305,000 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 $360,000 $288,000 Expenses Direct materials 50,400 36,000 Direct labor 72,000 43,200 Overhead including depreciation 129,600 129,689 Selling and administrative expenses 26,000 26,000 Total expenses 278,000 234,800 Pretax income 82,000 53,200 Income taxes (34%) 27,880 18,088 Net income $ 54,120 $ 35,112 Problem 24-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project 2 2. Determine each project's payback period. Payback Period Choose Denominator: Choose Numerator: Payback Period Payback period 0 - Project Y Project 2 0 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return 0 Project Y Project 2 0 Project Y Chart values are based on: ne i= Select Chart Amount X PV Factor Present Value Net present value Project Z Chart values are based on: ne i= Amount X Select Chart PV Factor Present Value = Net present value
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