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 1 $139,000 $116,000 113,000 136,000 3 98,000 93,000 4 89,000 65,000 5 27,000 56,000 Total $466,000 $466,000 2 net present value analysis Each project requires an investment of $252,000. A rate of 15% has been selected 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 0.756 0.694 0.797 0.712 3 0.840 0.658 0.579 0.751 0.683 4 0.636 0.572 0.482 0.792 0.747 5 0.621 0.567 0.497 0.402 DEE NEA 421 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