Exercise 26-1 (Static) Payback perlod, equal cash flows, and depreciation adjustment LO P1 Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment Project 2 requires an initial investment of $98,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Requin A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Net cash flow Project 1 $ 100,000 Project 2 $ 80,000 65,000 32,000 20,000 18,000 8,000 20,000 $ 7,900 $ 10,000 Project 1 Project 2 Income $ 100.000 3 Cash Flow 100,000 Income Cash Flow S 80,000 S 80,000 S 85,000 65,000 32,000 32,000 20,000 18,000 8.000 8.000 20,000 20,000 7,000 S 10.000 27,000 28.000 Required B >