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: Retail Store Year 1 2 3 4 5 Total Year 1 2 Each project requires an investment of $263,000. A rate of 15% has been selected for the net present value analysis. Present Value of $1 at Compound Interest 10% 3 4 5 Plant Expansion 6 $145,000 118,000 102,000 93,000 29,000 $487,000 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.909 0.826 0.751 0.683 0.621 Expansion 0.564 $121,000 142,000 97,000 68,000 59,000 $487,000 12% 0.893 0.797 0.712 0.636 0.567 0.507 15% 0.870 0.756 0.658 0.572 0.497 0.432 20% 0.833 0.694 0.579 0.482 0.402 0.335

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 5263,000 . A rate of 15% has been selected for the net present value analysis. Present Value of $1 at Compound Interest. Required: 1a. Compute the cash poyback period for each product