Question: Be You Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Each project requires an investment

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

Retail Store Expansion Plant Year Expansion $170,000 170,000 140,000 110,000 120,000 $710,000

Each project requires an investment of $480,000. A rate of 15% has been selected for the net present value analysis.Instructions1. 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.2. Prepare a brief report advising management on the relative merits of eachproject.

Retail Store Expansion Plant Year Expansion $170,000 170,000 140,000 110,000 120,000 $710,000 $200,000 160,000 120,000 120,000 110,000 3 4 Total $710,000

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