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Garcla Company can invest in one of two alternative projects. Project Y requires a $400,000 initial kivestment for new machinery with a four-year life and no salvage value. Project Z requires a $420,000 initial investment for new machinery whth a three-year life and no salvage value. The two projects yield the following annual results. Cosh flows occur evenly within each yeac (PV of St. EV of SI. EVA of S1, and EVA of \$5) (Use approprlate factor(s) from the tables provided.) Required: 1. Compute each project's annual net cash flows 2. Compute each projects payback period. If the company bases investment decislons solety on payback period, which project wil it choose? 3. Compute each project's accounting rate of return. If the company bases investment decisions solely on accounting rate of retum, which project will it choose? 4. Compute each project's net present value using 6% as the discount rate. If the company bases investment decisions solely on net present value, which project will it choose? Complete this question by entering your answers in the tabs below. Compute each projectis annual net cath hows. Ancuired. 1. Compnite pach motelectid artuial net cash finki. 2. Comput eich prowects pagback period. thoche Which proftct atilit chocse? Complete thin Guestion by enelering your ankwern in the eabs below. Required: 1. Compute each project's annual net cash flows. 2. Compute each project's payback period. If the company bases investment decisions solely on payback period, whic choose? 3. Compute each project's accounting rate of return. If the company bases investment decisions solely on accounting which project will it choose? 4. Compute each project's net present value using 6% as the discount rate. If the company bases investment decisions present value, which project will it choose? Complete this question by entering your answers in the tabs below. Compute each project's payback period. If the company bases investment decisions solely on payback period, which project Required: 1. Compute each project's annual net cash flows. 2. Compute each project's payback period. If the company bases investment decisions solely on payback period, whic choose? 3. Compute each project's accounting rate of return. If the company bases investment decisions solely on accounting which project will it choose? 4. Compute each project's net present value using 6% as the discount rate. If the company bases investment decisions present value, which project will it choose? Complete this question by entering your answers in the tabs below. Compute each project's accounting rate of return. If the company bases investment decisions solely on accounting rate of ret will it choose? 3. Compute each project's accounting rate of return. If the company bases investment decisions solely 4. Compute each project's net present value using 6% as the discount rate. If the company bases invest which project will it choose? present value, which project will it choose? Complete this question by entering your answers in the tabs below. Compute each project's net present value using 6% as the discount rate. If the company bases investment d net present value, which project will it choose? (Do not round intermediate calculations. Round your present decimals and final answers to the nearest whole dollar.)

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