Problem 25-2A Analysis and computation of payback period, accounting rate ofreturn, and net present value Lo Pl. P2, P3 IThe following information opples to the questions aisplayed below) Most company has an opportunity to invest in one of two new projects. Project Y requires a s350000 investment for new machinery with a fouryear life and no salvage value. Project Investment for new with a life and no salvage volue. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash occur evenly throughout each year. EV of $1 PV of $1 flows from the of and PVA of $b (Use appropriate factor(s) tables provided) Project Y Project z 390.000 345.000 Expenses Direct materials 43.125 Direct labor 51750 Overhead including depreciation 40,400 155.250 Selling and administrative expenses 28 000 31000 Total expenses 281.125 89,000 63875 24,920 Income taxes (28%) 64,080 45,990