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 $167,000 $139,000 2 136,000 164,000 3 118,000 112,000 4 107,000 79,000 5 33,000 67,000 Total $561,000 $561,000 Each project requires an investment of $303,000. A rate of 20% has been selected for the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10%

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 $303,000. A rate of 20% has been selected for the net present value analysis. 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 offers a higher