2. relative merits of the two investments. PR 11-2A Cash payback period, net present value method, and analysis Obj. 2, 3 Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from O each project are as follows: Year Plant Expansion Retail Store Expansion $ 450,000 $ 500,000 N 450,000 400,000 3 340,000 350,000 280,000 250,000 UI D 180,000 200,000 Total $1,700,000 $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: A. Cash payback period. (Exhibit 2). 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 each project