Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment...

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Accounting

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $265,000. Project 2 requires an initial investment of $189,000. Annual Amounts Project 1 Project 2 Sales of new product $ 152,000 $ 132,000 Expenses Materials, labor, and overhead (except depreciation) 78,000 45,000 DepreciationMachinery 33,000 31,000 Selling, general, and administrative expenses 21,000 33,000 Income $ 20,000 $ 23,000 (a) Compute each projects annual net cash flow. (b) Compute payback period for each investment.

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