2. Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Year Plant Expansion Retail Store Expansion 1 $440,000 $490,000 2 440,000 390,000 3 350,000 360,000 4 270,000 240,000 5 180,000 200,000 Total $1,680,000 $1,680,000 Problem 2 Instructions a. Compute the following for each product: i. Cash payback period. ii. The net present value. Use the present value of $1 table appearing in this chapter (Exhibit 2). b. Prepare a brief report advising management on the relative merits of each project. (Minimum two full paragraphs.) 2. Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Year Plant Expansion Retail Store Expansion 1 $440,000 $490,000 2 440,000 390,000 3 350,000 360,000 4 270,000 240,000 5 180,000 200,000 Total $1,680,000 $1,680,000 Problem 2 Instructions a. Compute the following for each product: i. Cash payback period. ii. The net present value. Use the present value of $1 table appearing in this chapter (Exhibit 2). b. Prepare a brief report advising management on the relative merits of each project. (Minimum two full paragraphs.)