[The following information applies to the questions displayed below.] Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery...



[The following information applies to the questions displayed below.]


Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $325,000 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 YProject Z
Sales$370,000$296,000
Expenses
Direct materials51,80037,000
Direct labor74,00044,400
Overhead including depreciation133,200133,200
Selling and administrative expenses26,00026,000
Total expenses285,000240,600
Pretax income85,00055,400
Income taxes (38%)32,30021,052
Net income$52,700$34,348

oblem 26-2A Part 3<br>-Compute each project's accounting rate of return.<br>Accounting Rate of Return<br>Choose Numerator:<br>Choose Denominator<br>Accounting Rate of Return<br>Accounting rate of return<br>Project Y<br>0.<br>Project Z<br>< Prev<br>14<br>of 9<br>Next ><br>07 12943.jpg<br>144844485 11655...jpg<br>144819707 12943. jpg<br>144844485 11655.jpg<br>Type here to search<br>F1<br>F2<br>F3<br>F4<br>F5<br>F6<br>F7<br>F8<br>F9<br>F10<br>F1<br>23<br>%$4<br>&<br>3<br>4.<br>6<br>7<br>E<br>T<br>A<br>G<br>JK<br>C8<br>FL<br>S<br>

Extracted text: oblem 26-2A Part 3 -Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator Accounting Rate of Return Accounting rate of return Project Y 0. Project Z < prev="" 14="" of="" 9="" next=""> 07 12943.jpg 144844485 11655...jpg 144819707 12943. jpg 144844485 11655.jpg Type here to search F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F1 23 %$4 & 3 4. 6 7 E T A G JK C8 FL S

Jun 09, 2022
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