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 Total $220,000 $220,000 Each product requires an investment of $125,000. A rate of

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. 1a. Compute the cash payback period for each product