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: Year Plant Expansion Retail Store Expansion 1 $133,000 $111.000 2 108,000 130,000 3 $4,000 89,000 4 85,000 62,000 5 54,000 25,000 $445,000 Total $446,000 Each project requires an investment of $241,000. A rate of 20% has been selected for the net present value analysis. Year Present Value of $1 at Compound Interest 6% 10% 12% 15%. 20% 0.943 0.909 0.993 0.870 0.833 0.890 0.826 0.797 0.756 0.694 1 2 0.810 0.751 0.712 0.658 0.579 4 01.792 0.683 0.536 0.572 01.482 5 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 0.233 8 0.627 0.467 0.404 0.327 9 0.592 0.424 0.361 0.284 0.154 10 0.55B 0.386 0.322 0.247 0.162 Required: Required: 1a. Compute the cash payback period for each product. Cash Payback Period Plant Expansion 2 years Retail Store Expansion 2 years 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 $ 241,000 X $ 241,000 X Less amount to be invested 108,000 X $ 130,000 X Net present value $ 50,495 X 44,717 X 2. Because of the timing of the receipt of the net cash flows, the plant expansion offers a higher net present value