Required information (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 $345,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $345,000 investment for new machinery with a four-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 $365,000 $292,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 51,100 36,500 73,000 43,800 131,400 131,400 26,000 26,000 281,500 237,700 83,500 54,300 31,730 20,634 $ 51,770 $ 33,666 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z Project Y Project Z $365,000 $292,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 51,100 36,500 73,000 43,800 131,400 131,400 26,000 26,000 281,500 237,700 83,500 54,300 31,730 20,634 $ 51,770 $ 33,666 2. Determine each project's payback period. Payback Period Choose Numerator: 1 Choose Denominator: = Payback Period Payback period 1 II = = 0 Project Y Project Z = II 0 Project Y Project Z $365,000 $292,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (38%) Net income 51,100 36,500 73,000 43,800 131,400 131,400 26,000 26,000 281,500 237, 700 83,500 54,300 31,730 20,634 $ 51,770 $ 33,666 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: II = = Accounting Rate of Return 1 II Accounting rate of return 0 Project Y Project Z 0 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 = i = Select Chart Amount ? PV Factor Present Value = $ 0 Net present value Project z Chart values are based on: n i = Select Chart Amount ? PV Factor Present Value $ 0 Mat nacant vahin Project Y Chart values are based on: n = i = Select Chart Amount ? PV Factor = Present Value $ 0 Net present value Project Z Chart values are based on: n = i = Select Chart Amount ? PV Factor = Present Value = $ 0 Net present value