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 $450,000 $500,000 450,000 400,000 340,000 350,000 280,000 250,000 180,000 200,000 $1,700,000 $1,700,000 Each project requires an investment of $900,000. A rate of 15% has been selected for the net present value analysis. Present Value of $1 at Compound Interest 2 3 4 5 Total Year 1 2 3 4 5 6 7 8 6% 0.943 0.890 0.840 0.792 0.747 0.705 10% 0.665 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.627 0.467 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 4

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: Each project requires an investment of 5900,000 . A rate of 15% has been selected for the net present value analysis. Required: 1a. Compute the cash payback period for each project. 1a. Compute the cash payback period for each project. 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. 2. Because of the timing of the receipt of the net cash flows, the orrers higher