Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project...

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Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Plant Retail Store Expansion $119,000 Year Expansion 1 $142,000 2: 117,000 140,000 3 101,000 96,000 4 91,000 67,000 5 28,000 57,000 Total $479,000 $479,000 Each project requires an investment of $259,000. 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% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 . 0.040 0.751 0.712 0.650 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.021 0.567 0.497 0.402 mplex Homework eBook Print tem Each project requires an investment of $259,000. 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% 1 0.943 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 0.579 4 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 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 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1a. Compute the cash payback period for each product. Plant Expansion Cash Payback Period Retail Store Expansion 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar, Check My Work 2 more Check My Work uses remaining items Previous Next 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 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 Plant Expansion Retail Store Expansion 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Present value of net cash flow total Less amount to be invested Net present value Plant Expansion Retail Store Expansion 2. Because of the timing of the receipt of the net cash flows, the offers a higher i Check My Work 2 more Check My Work uses remaining. Previous Ne Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Plant Retail Store Expansion $119,000 Year Expansion 1 $142,000 2: 117,000 140,000 3 101,000 96,000 4 91,000 67,000 5 28,000 57,000 Total $479,000 $479,000 Each project requires an investment of $259,000. 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% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 . 0.040 0.751 0.712 0.650 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.021 0.567 0.497 0.402 mplex Homework eBook Print tem Each project requires an investment of $259,000. 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% 1 0.943 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 0.579 4 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 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 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1a. Compute the cash payback period for each product. Plant Expansion Cash Payback Period Retail Store Expansion 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar, Check My Work 2 more Check My Work uses remaining items Previous Next 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 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 Plant Expansion Retail Store Expansion 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Present value of net cash flow total Less amount to be invested Net present value Plant Expansion Retail Store Expansion 2. Because of the timing of the receipt of the net cash flows, the offers a higher i Check My Work 2 more Check My Work uses remaining. Previous Ne

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Calculations of payback period and NPV are as follows As NPV of Plant expansion option is higher tha... View the full answer