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 $155,000 $129,000 2 126,000 152,000 3 109,000 104,000 AN 73,000 99,000 31,000 5 62,000 Total $520,000 $520.000 Each project requires an investment of $281.000. A rate of 12% 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 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.658 0.712 0.636 0.579 0.482 4 0.683 0.572 0.792 0.747 5 0.621 0 567 0.497 0.402 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion 2 years v 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 dolla Plant Expansion Retail Store Expansion Present value of net cash flow total 368,144 tess amount to be invested Net present value 74,636 X 2. Because of the timing of the receipt of the net cash flows the plant expansion V offers a higher net present value