Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $320,000 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 $360,000 Sales $288,000 Expenses Direct materials 50,400 72,000 129,600 26,000 278,000 82,000 26,240 36,000 43,200 129,600 26,000 234,800 53,200 17,024 Direct labor overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (328) 55,760 $36,176 Net income Problem 11-2A Part 1 Required: 1. Compute each project's annual expected net cash flows. Project Y Project Z 2. Determine each project's payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period Project Y 0 Project Z 0 3. Compute each project's accounting rate of return Accounting Rate of Return Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting rate of return Project Y Project Z 4. Determine each project's net present value using 7% 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 = Select Chart Amount PV Factor Present Value X Net present value Project Z Chart values are based on: n = PV Factor = Select Chart Amount Present Value Net present value