solve all the parts.

Required information 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 $315,000 investment for new with a six-year life and no salvage value. Project Z requires a $315,000 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 S1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project $390,000 $312,000 39,000 78,000 46,800 140,400 140,400 28 00028o 54,6003 Direct labor Overhead including depreciation Selling and administrative expenses 28,000 301,000 254,200 57,800 89,000 26,700 17 340 Pretax income Income taxes (30%) Net income $ 62,300 40,460 Problem 25-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. K Prev 2 3 4 5 of 15 Next> straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. EV of $1. PVA of $1, and FVAc ) (Use appropriate factor(s) from the tables provided.) roject Sales Expenses $390,000 $312,000 54,600 39,000 78,000 46, 800 140,400 140,400 28,000 301,000 254,200 57,800 26,700 17,340 $ 62,300 40,460 Direct labor Overhead including depreciation Selling and administrative expenses 28,000 Total expenses Pretax income Income taxes (308) 89,000 578 Problem 25-2A Part 1 Required 1. Compute each project's annual expected net cash flows. Project Y Project z $390,000 $312,000 Sales Expensers 54,60039,000 78,000 46,800 140,400 140,400 28,00028,000 301,000 254,200 89,000 57,800 Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (308) 26.70017 340 17,340 s62,300 40,460 Problem 25-2A Part 2 2. Determine each project's payback period. Payback Period Choose DenominatorPayback Period Choose Nu tor: Project Y Project Z 2 machinery with a six-year life and no salvage value. Project Z requires a $315,000 investment for new ma five-year life and no salvage value. The two projects yield the following predicted annual results. The com straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $ ) (Use appropriate factor(s) from the tables provided.) Project $390,000 $312,000 Direct materials Direct labor Overhead including depreciation selling and administrative expenses 54,600 39,000 46,800 140,400 140,400 28,000 301,000 254,200 57,800 17,340 78,000 28,000 89,000 Total expenses Pretax income Income taxes (30%) Net income 26,700 62,300 40,460 Problem 25-2A Part 3 3. Compute each project's accounting rate of return. Accounting Rate of Return Accounting Rate of Choose Numerator Choose Denominator: -Accounting rate of return Project Y Project Z 25-2A Part 4 each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end. (Round ate c ation t Value n a Chart Amount xPV Factor Present Value Present value of cash inflows Present value of cash outflows Net present value i e Amount x PV FactorPresent Value elect Chart Net