Question: PR 11-2A Cash payback period, net present value method, and analysis Obj. 2,3 1.B. Plant expansion $305,040 Elite Apparel Inc. is considering two investment

PR 11-2A Cash payback period, net present value method, and analysis Obj.

PR 11-2A Cash payback period, net present value method, and analysis Obj. 2,3 1.B. Plant expansion $305,040 Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows Plant Expansion $450,000 Retail Store Expansion $500,000 450.000 340,000 400.000 350,000 Total 280,000 180,000 $1,700,000 250,000 200,000 $1,700.000 Each project requires an investment of $900,000. A rate of 15% has been selected for the net present value analysis. Instructions 1. Compute the following for each product: 2 A. Cash payback period. 11. The net present value. Use the present value of $1 table appearing in this chapter (Exhibit 2). Prepare a brief report advising management on the relative merits of each project.

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