Cash Payback period, Net Present Value Method, and Analysis GWH Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Year Lakeside Fishing 1 Primitive Camping $129,000 105,000 $100,000 2 126,000 3 91,000 87,000 4 82,000 61,000 25,000 $1,000 Total $433,000 $433,000 Present Value of $i at Compound Interest 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1 2 0.800 0.826 0.792 0.756 3 0.840 0.251 0.712 0.658 0.579 0.792 0.572 0.683 0.621 0.636 0.562 5 0.742 0.402 6 0.705 0.564 0.502 0.335 7 0.665 0.513 0.376 B 0.622 0.462 0.404 0.327 0.233 9 0.592 0.424 0.361 0.194 10 0.550 0.386 0.322 0.162 Each product requires an investment of $234,000. A rate of 20% has been selected for the net present value analysis Required: ia. Compute the cash payback period for each project Cash Payback Period Primitive Camping 2 years Lakeside Fishing 2 years 16. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sign to indicate a negative net present value. Primitive Camping Lakeside Fishing Present value of net cash flow total Amount to be invested 234.000 234,000 Net present value