Question: Cash Payback Period, Net Present Value Method, and Analysis McMorris Publications Incis considering two new magazine products, the estimated net cash flows from each product


Cash Payback Period, Net Present Value Method, and Analysis McMorris Publications Incis considering two new magazine products, the estimated net cash flows from each product are as follows: Present Value of 51 at Compound Interest Each product reouires an investment of $291,000. A rote of 15% has been selected for the net oresent value analysis. Each product requires an investment of $201,000, A rate of 15$ has been selected for the net present value analysis. Required: 1a. Compute the cavi payback period for each project. 1b. Cornqute the net piesent value, Use the precent value of $1 table presented above. If required, use the minus sign to indicate 2. All of the followng are thue regarding the two products except: a. If funds are unlimited, only the Canadian Crcling product is acceptable to pursue b. Both products offer the same total net cach flows. c. Because of the turning of the receipt of the net cash Bows, the Caradian Cycling nagazine ofles a higher net present value. d. Eoth products offer the same cash payoack penod. Fenthach rowerwhik 1 (a) for each project, start with Year 1 and accumulate the net cash flows untd the intial investment is reached. roleak W Wok 1. (a) For each project, start with Year 1 and accurnulate the not cash flows unts the initial investment is reached. (b) For eich project, muliply the piesent value factor for euch year by that year's net cash flow, Subtract the inutai imvestment from the total gresent value of the niet cash how: 2. A report can take many forms and indude information regarding the total net cash flows, cash payback period, ond net present value
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