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

Cash Payback Period, Net Present Value Method, and Analysis for a ServiceCompany Social Circle Publications Inc. is considering two new magazine products. The

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: Year Sound Cellar Pro Gamer 1 $ 65,000 $70,000 2 60,000 55,000 3 25,000 35,000 4 25,000 30,000 5 45,000 30,000 $220,000 $220,000 Total 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 Compound Interest < Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279- 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: Previous

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