1 Cash Payback period, Net Present Value Method, and Analysis Elite Apparel Inc. is considering two Investment projects. The estimated net cash flows from each project are as follows: Plant Retail Store Year Expansion Expansion $144,000 $121,000 118,000 141,000 3 102,000 97,000 4 92,000 68,000 29,000 58,000 Total $485,000 $485,000 2 5 Each project requires an investment of $262,000. A rate of 6% has been selected for the net present value analysis. Present Value of $1 at Compound Interest Year 69 10% 0.943 0.893 0.833 12% 15% 20% 1 0.909 0.870 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.497 0.402 0.567 0.507 6 0.705 0.564 0.432 0.335 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1a. Compute the cash payback period for each product Cash Payback Period Plant Expansion Retail Store Expansion 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 Present value of net cash flow total Less amount to be invested Net present value 2. Because of the timing of the receipt of the net cash flows, the offers a higher