Investment for new machinery research assignment

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $350,000 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-lie depreciation, and cash flows occur evenly throughout each year.
Project Y Project Z
Sales……………………………………$350,000 $280,000
Expenses
Direct Materials…………………..$49,000 $35,000
Direct labor………………………..$70,000 $42,000
Overhead including deprec…$126,000 $126,000
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