Determine each projects net present value using 9% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.)

Problem 26-2A 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 $325,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $325,000 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 $350,000 $280,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (26%) Net income 49,000 70,000 126,000 25,000 270,000 80,000 20,800 $ 59,200 35,000 42,000 126,000 25,000 228,000 52,000 13,520 $ 38,480 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 2. Determine each project's payback period. Choose Numerator: Payback Period Choose Denominator: 1 = Payback Period Payback period = 0 Project Y Project Z = 0 Project Y Chart values are based on: n = i = Select Chart Amount PV Factor = Present Value $ 0 Net present value Project Z Chart values are based on: n = i = Select Chart Amount PV Factor Present Value $ 0 Net present value