Compute the cash back period for each project from the following data Year 1 2 3 4

Compute the cash back period for each project from the following data

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Year 1 2 3 4 5 6 7 8 9 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.683 0.636 0.572 0.482 0.621 0.567 0.497 0.402 0.564 0.507 0.432 0.335 0.513 0.452 0.376 0.279 0.467 0.404 0.327 0.233 0.424 0.361 0.284 0.194 0.386 0.322 0.247 0.162 10 Required: 0.792 0.747 0.705 0.665 0.627 0.592 0.558 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion Retail Store Expansion 18 15% has been selected for the net present value analysis. 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Plant Expansion Retail Store Expansion Total present value of net cash flow Less amount to be invested Net present value 2. Because of the timing of the receipt of the net cash flows, the Check My Work offers a higher Year 1 2 3 4 5 6 7 8 9 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.683 0.636 0.572 0.482 0.621 0.567 0.497 0.402 0.564 0.507 0.432 0.335 0.513 0.452 0.376 0.279 0.467 0.404 0.327 0.233 0.424 0.361 0.284 0.194 0.386 0.322 0.247 0.162 10 Required: 0.792 0.747 0.705 0.665 0.627 0.592 0.558 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion Retail Store Expansion 18 15% has been selected for the net present value analysis. 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Plant Expansion Retail Store Expansion Total present value of net cash flow Less amount to be invested Net present value 2. Because of the timing of the receipt of the net cash flows, the Check My Work offers a higher

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To compute the cash payback period for each project we need to determine the time it takes for the cumulative net cash flows to equal or exceed the in... View the full answer