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University Of California, Los Angeles Operations And Supply Chain Management Assignment Help - Payback Period,

Question - 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 six-year life and no salvage value. Project Z requires a
$305,000 investment for new machinery with a five-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.

Project Y Project Z
Sales $ 385,000 $ 325,000
Direct materials 53,900 40,625
Direct labor 77,000 48,750
Overhead including
depreciation 138,600 146,250
Selling and
expenses 28,000 29,000

Total expenses 297,500 ...Read More

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