Can you please check my work Most Company has an opportunity to invest in one of two new projects. Project Y requires a $305,000 investment for newmachinery with a four-year life and no salvage value. Project Z requires a $305,000 investment for new machinery with athree-year life and no salvage value. The two projects yield the following predicted annual results. The company usesstraight-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$385,000 $308,000SalesExpensesDirect materials53,90077,000138,60028,000297,50087,50038,50046,200138,600Direct laborOverhead including depreciationSelling and administrative expensesTotal expenses27,000250,30057,70015,002Pretax incomeIncome taxes (26%)22,750Net income$ 64,750$ 42,6982. Determine each project's payback period.Payback Period 2. Determine each project's payback period.Payback PeriodChoose Numerator:Choose Denominator:Payback Period%3DCost of investmentI Annual net cash flowPayback period%3DProject Y2$138,600 /2$27,000 =5.13 yearsProject Z297,50022,75013.08 years%3D%24

Payback period:-It is referred to the time limit required in order to recover the cost of an…

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $305,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $305,000 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 EVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project 2 $385,000 $308,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses 53,900 000 ,רר 138,600 38,500 46,200 138,600 28,000 27,000 250,300 297,500 Pretax income 87,500 57,700 Income taxes (268) 22,750 15,002 Net income $ 64,750 $ 42,698 Determine each project's payback period.

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $305,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $305,000 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 EVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project 2 $385,000 $308,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses 53,900 000 ,רר 138,600 38,500 46,200 138,600 28,000 27,000 250,300 297,500 Pretax income 87,500 57,700 Income taxes (268) 22,750 15,002 Net income $ 64,750 $ 42,698 Determine each project's payback period.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 10E: Roberts Company is considering an investment in equipment that is capable of producing more...

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