Required information Problem 11-2A Analyzing and computing 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 $330,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $330,000 investment for new machinery with a three-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 FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project z $375,000 $300,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (34%) Net income 52,500 75,000 135,000 27,000 289,500 85,500 29,070 $ 56,430 37,500 45,000 135,000 27,000 244,500 55,500 18,870 $ 36,630 4. Determine each project's net present value using 8% 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 = 8% Select Chart PV Factor = Present Value Amount X 138,930x Present Value of an Annuity of 1 $ $ 0 Present value of cash inflows Present value of cash outflows Net present value 330,000 Project Z Chart values are based on: na i= 8% PV Factor = Present Value Select Chart Present Value of an Annuity of 1 Amount 146,630 $ $ 0 Present value of cash inflows Present value of cash outflows Net present value 330,000