Year Cash Payback Period, Net Present Value Method, and Analysis McMorris Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Canadian Cycling European Hiking $159,000 $133,000 130,000 156,000 112,000 107,000 102,000 75,000 N - 3 4 5 32,000 64,000 Total $535,000 $535,000 Year Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 0.792 4 0.683 0.636 0.572 0.482 0.747 5 0.621 0.567 0.497 0,402 6 0.705 0.335 0.564 0.507 0.432 7 0.665 0.513 0.452 0.376 0.279 8 0.467 0.327 0.627 0.404 0.233 9 0.592 0.424 0.361 0.284 0.194 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 Each product requires an investment of $289,000. A rate of 10% has been selected for the net present value analysis. Required: ia. Compute the cash payback period for each project. Canadian Cycling Cash Payback Period 2 years 2 years European Hiking 1b. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sign to indicate a negative net present value Canadian Cycling European Hiking Present value of net cash flowtal Amount to be invested Net present value