Question: CH 25-2 INSTRUCTIONS Cash Payback Period, Net Present Value Method, and Analysis Home Publications Inc. is considering two new magazine products. The estimated net cash

CH 25-2

INSTRUCTIONS

Cash Payback Period, Net Present Value Method, and Analysis

Home Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows:

CH 25-2 INSTRUCTIONS Cash Payback Period, Net Present Value Method, and Analysis

Each product requires an investment of $187,000. A rate of 20% has been selected for the net present value analysis.

Home 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 $187,000. A rate of 20% has been selected for the

Year Home & Garden $103,000 84,000 73,000 66,000 20,000 $346,000 Music Beat $86,000 101,000 69,000 48,000 42,000 4 Total $346,000

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