Cash Payback Period, Net Present Value Method, and Analysis McMorris Publications Inc. is considering two new magazine products. The estimated net cash nows from each product are as follows Year Canadian Cycling European Hiking 124,00D $104,000 101,000 121,000 87,000 83,000 79,000 58,000 25,000 50,000 $416,000 $416,000 Total Present Value of $1 at Compound Interest 10% Year 6%% 12% 15% 20% 0.943 .909 8930.870 0.833 0.890 0.826 D.7970.756 0.69 0.840 0.751 0.712 0.65 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 D.5070.432 0.335 0.665 0.513 .4520.376 0.279 0.627 0.467 0.4040.3270.233 0.592 0.4240.361 .284 0.194 10 0.558 0.386 0.322 .247 0.162 Each product requires an investment of $225,000. A rate of 696 has been selected for the net present value analysis. Required: 1a. Compute the cash payback period for each project. Cash Payback Period Canadian Cycling 2 years European Hiking 2 years 1b. 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. Canadian Cycling European Hiking Present value of net cash flow total Amount to be invested Net present value 2. All of the following are true regarding the two products except: a. If funds are unlimited, only the Canadian Cycling product is acceptable to pursue b. Both products offer the same total net cash flows. c. Because of the timing of the receipt of the net cash flows, the Canadlan Cycling magazine offers a higher net present value d. Both products offer the same cash payback period