mework Assignment Soved Help Save & CH Required information [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 $345,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $345,000 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project 2 Sales $380,000 $384, eee Expenses Direct materials 53,200 38,280 Direct labor 76,000 45,600 Overhead including depreciation 136,800 136, see Selling and administrative expenses 27,000 27, eee Total expenses 293,eee 247, 409 Pretax income 87,eee 56,600 Income taxes (28) 24,360 15,848 Net income $ 62,640 $ 40,752 Homework Assignment Saved 2. Determine each project's payback period. Payback Period Choose Numerator: / Choose Denominator: 1 = Payback Period Payback period Il Project Y Project Z 11 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return Project Y Project Z 4. Determine each project's net present value using 6% as the discount rate Assume that cash flows occur at each year-end Round your intermediate calculations.) Project Y Chart values are based on: n is Select Chart Amount PV Factor Prese.it Value Net present value Project Z