Most Company has an opportunity to invest in one of two new projects. Project Y requires a $310,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $310,000 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
Sales $370,000 $296,000
Expenses :
Direct materials 51,800 37,000
Direct labor 74,000 44,400
Overhead including depreciation 133,200 133,200
Selling and administrative expenses 26,000 26,000
Total expenses 285,000 240,600
Pretax income 85,000 55,400
Income taxes (34%) 28,900 18,836
Net income $56,100 $36,564

Required:
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 = $174,233.32

Project Z = $76,358.86

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Cash flow = net income + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Project Y =

Depreciation =  $310,000 / 5 = 62,000

62,000 + $56,100 = $118,100

Project Z

Depreciation =  $310,000 / 4 = $77,500

$77,500 +  $36,564 = $114,064

NPV can be calculated using a financial calculator

Project Y

cash flow in year 0 = $-310,000

Cash flow each year from year 1 to 5 =  $118,100

I = 7%

NPV =

Project Z

cash flow in year 0 = $-310,000

Cash flow each year from year 1 to 4 =  $114,064

I = 7%

NPV = $76,358.86

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

118100

114064

answer; i believe both technician (a) and (b) are correct; /// good luck

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number