Question: eBook Cash Payback Period, Net Present Value Method, and Analysis Publications Inc. is considering two new magazine products. The estimated net cash flows Year Home
eBook Cash Payback Period, Net Present Value Method, and Analysis Publications Inc. is considering two new magazine products. The estimated net cash flows Year Home & Garden 146,000 19,000 103,000 93,000 Music Beat $122,000 143,000 98,000 69,000 58,000 $490,000 29,000 Total $490,000 Each product requires an investment of $265,000. A rate of 20% has been selected for the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 10.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0497 0402 6 0.705 0 564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0467 0404 0.327 0.233 9 0.592 0.424 0.361 0284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required 1a. Compute the cash payback period for each product, Cash Payback Period : select Home & Garden Music Beat tb. Compute the net present value. Use the ( Select present value or si table above, irrequired, road to the neamt ale
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