Question: Cash payback period, net present value method, and analysis for a service company Social Circle Publications inc. is considering two new magazine products. The estimated


Cash payback period, net present value method, and analysis for a service company Social Circle Publications inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Each product requires an investment of $125,000. A rate of 10% has been selected for the net present value analysis. Each product requires an investment of $125,000. A rate of 10% has been selected for the net present value analysis. Present Value of $1 at Comnound Intareet 1a. Compute the cash payback period for each product. 16. Compute the net present volue for each product. Use the present value of $1 table above. If required, round to the nearest dollar Required: 1a. Compute the cash payback period for each product. 1b. Compute the net present value for each product. Use the present value of $1 table above. If required, round to the nearest dollar. 2. Because of the timing of the recelpt of the net cash flows, the magazine expansion offers a higher
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