Exercise 24-1 (Static) Payback period, equal cash flows, and depreciation adjustment LO P1 Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $140,000. Project 2 requires an initial investment of $90,000. Annual Amounts Project 1 Project 2 Sales of new product $ 100, 000 $ 80, 000 Expenses Materials, labor, and overhead (except depreciation) 64, 900 35, 000 Depreciation-Machinery 20, 900 18, 090 Selling, general, and administrative expenses 8,900 20, 090 Income $ 8,000 $ 7,000 (a) Compute each project's annual net cash flows. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flows. Expected Net Cash Flow - Project 1 Net cash flow Expected Net Cash Flow - Project 2 Net cash flow Exercise 24-1 (Static) Payback period, equal cash flows, and depreciation adjustment LO P1 Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $140,000. Project 2 requires an initial investment of $90,000. Annual Amounts Project 1 Project 2 Sales of new product $ 100, 000 $ 80,006 Expenses Materials, labor, and overhead (except depreciation) 64,900 35, 090 Depreciation-Machinery 20, 000 18, 090 Selling, general, and administrative expenses 8,000 20, 090 Income $ 8,000 $ 7,000 (a) Compute each project's annual net cash flows. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Required A Required B Compute payback period for each investment. Payback Period Numerator: 1 Denominator: = Payback period Project 1 11 11 Project 2