Question: Celebration Apparel Inc is considering two investment projects The estimated

Celebration Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:

Each project requires an investment of $ 750,000. A rate of 15% has been selected for the net present value analysis.

1. Compute the following for each product: a. Cash payback period.
b. The net present value. Use the present value of $ 1 table appearing in this chapter (Exhibit 1).
2. Prepare a brief report advising management on the relative merits of eachproject.

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  • CreatedJune 27, 2014
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