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ash Payback period, Net Present Value Method, and Analysis Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project

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ash 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: Year Plant Expansion Retail Store Expansion $122,000 $146,000 120,000 103,000 93,000 30,000 $492,000 144,000 98,000 69,000 59,000 $492,000 Total Each project requires an investment of $266,000. A rate of 10% has been selected for the net present value analysis Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.402 6 0.705 0.564 0.507 0.432 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.233 9 0 592 0.424 0.361 0. 24 10 0.5 0.3 0.32 0.247 0.162 03 0.327 NOLIKTI 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion Retail Store Expansion 1b. Compute the net present v 1 year the present value of $1 table above. If required, round to the nearest Plant Expansion Retail Store Expansion 3 years 2 years Present value of net cash flow Less amount to be invested 4 years Net present value 2. Because of the timing of the receipt of the net cash flows, the offers a higher co mand .558 0.386 0.322 10 0 Required: 0.247 0.162 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion Retail Store Expansion 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 plant expansion Net present value retail store expansion 2. Because of the timing of the receipt of the net cash flows, the bffers a higher v.162 equired: 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion Retail Store Expansion 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 net present value net cash flow Net present value 2. Because of the timing of the receipt of the net cash flows, the offers a higher

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