Problem 25-2A Analysis and computation of 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 $310,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $310,000 investment for new machinery with a four-year life and no salvage value. The two projects yleld the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project Z $395,000 $325,000 Direct materials Direct labor Overhead including depreciation Selling and administrative expenses 55,300 79,000 142,200 28,000 40,625 48,750 146,250 29,000 Total expenses 304,500 264,625 Pretax income Income taxes (32%) 90,500 28,960 60,375 19,320 Net income S 61,540 41,055