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Most Company has an opportunity to invest in one of two new projects. Project Y requires a $335,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $335,000 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. (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 $360,000 $288,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (32) Net income 50,400 72,000 129,600 26,000 278,000 82,000 26,240 $ 55,760 36,000 43,200 129,600 26,000 234,800 53,200 17,024 $36,176 Required: 1. Compute each project's annual expected net cash flows. Project Y Project 55,750 $ 36,176 $ Net Income Depreciation expense Most Company has an opportunity to invest in one of two new projects. Project Y requires a $335,000 machinery with a five-year life and no salvage value. Project Z requires a $335,000 investment for new four-year life and no salvage value. The two projects yield the following predicted annual results. The straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. FV of $1. PVA ) (Use appropriate factor(s) from the tables provided.) Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (32) Net income Broject Y Project % $360,000 $288,000 50,400 36,000 72,000 43,200 129,600 129,600 26,000 26,000 278,000 234, 800 82,000 53,200 26,240 17,024 $ 55,760 $. 36,176 2. Determine each project's payback period. Choose Numerator: Payback Period 1 Choose Denominator: 11 Payback Poriod Payback period 0 Project Y Project 2 0 [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 $335,000 investment machinery with a five-year life and no salvage value. Project Z requires a $335,000 investment for new machinery four-year life and no salvage value. The two projects yield the following predicted annual results. The company use straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. FV of $1. PVA of $1, and FV. (Use appropriate factor(s) from the tables provided.) Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (32) Net income Project Y Project 2 $360,000 $288,000 50,400 36,000 72,000 43,200 129,600 129,600 26,000 26,000 278,000 234,800 82,000 53,200 26,240 17,024 $ 55,760 $ 36,176 3. Compute each project's accounting rate of return Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return 11 Project Y Project 2 4. Determine each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end (Round your intermediate calculations.) Project Chart values are based on: Amount Select Chart py Factor Present Value Not prosent value Project Chart values are based on: na Select Chart Amount PV Factor Present Value Net present value

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