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 $350,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $350,000 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 2 $350,000 $200,000 Sales Expenses Direct materials Direct labor Overhend including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (30) Net income 49,000 70,000 126,000 25,000 270,000 80,000 24,000 $ 56,000 35,000 42,000 126,000 25,000 228,000 52,000 15,600 $ 36,400 Problem 11-2A Part 4 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.) Required information 4. Determine each projectS nel present value using 6% as the uiscount rate. Assume that cash loWS OC (Round your intermediate calculations.) Project Y Chart values are based on: n 0 8% Select Chart Amount x PV Factor Present Value Present Value of 1 $ 350,000 1.0000 = $ 350,000 Present value of cash inflows S 350.000 Present value of cash outflows 0 $ 350,000 Net present value Project Z Chart values are based on: na O = 8% Select Chart Amount X PV Factor Present Value $ Net present value