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Most Company has an opportunity to invest in one of two new projects. Project Y requires a $315,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $315,000 investment for new machinery with a three-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
Sales		$	395,000				$	320,000
Expenses
Direct materials			55,300					40,000
Direct labor			79,000					48,000
Overhead including depreciation			142,200					144,000
Selling and administrative expenses			28,000					29,000
Total expenses			304,500					261,000
Pretax income			90,500					59,000
Income taxes (28%)			25,340					16,520
Net income		$	65,160				$	42,480
1. Compute each projects annual expected net cash flows. 2. Determine each projects payback period. 3. Compute each projects accounting rate of return. 4. Determine each projects net present value using 8% as the discount rate. Assume that cash flows occur at each year-end.

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