Year 1 Cash Payback Period, Net Present Value Method, and Analysis Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Plant Expansion Retail Store Expansion $109,000 $92,000 2 90,000 107,000 77,000 74,000 70,000 52,000 5 22,000 43,000 Total $368,000 $368,000 3 4 Each project requires an investment of $199,000. A rate of 6% 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 5 0.747 0.621 0.567 0.497 0.402 6 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 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar Plant Expansion Retail Store Expansion Present value of net cash flow total Less amount to be invested 199,000 199,000 Net present value