Cash Payback Period, Net Present Value Method, and Analysis Blue Ridge Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows Year Sound Cellar Pro Gamer 1 $91,000 $98,000 2 84,000 3 35,000 77,000 49,000 42,000 4 35,000 5 63,000 42,000 Total $308,000 $308,000 Each product requires an investment of $175,000. A rate of 10% has been selected for the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 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 0.567 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 00 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 Sound Cellar Pro Gamer 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Sound Cellar Pro Gamer 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 magazine expansion offers a higher