Unique Boutique Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:

Each project requires an investment of $770,000. A rate of 15% has been selected for the net present value analysis.
Instructions
1. Compute the following for each project:
a. Cash payback period.
b. The net present value. Use the present value of $1 table appearing in this chapter.
2. Prepare a brief report advising management on the relative merits of eachproject.

Plant Retail Store Year Expansion Expansion 280,000 260,000 230,000 260,000 270,000 260,000 260,000 250,000 250,000 280,000 4 Total $1,300 000 1,300,000