Cad Payback Fed, GWM Pub Year Inc. is coming new magnets. The dam sach product i Primitive Camping $106,300 2 3 75.000 71,000 4 14,000 21.000 Total Proof $1 at Compound lat Year ww 10% 12% 30% 0.043 0.479 0.833 2 1300 6.797 3.75 3 0791 6.712 BASE 6519 792 0606 6572 6.482 8.747 670 6421 1367 2.497 0.564 307 85 6513 2.452 0.3% 9427 07 5414 0.327 0592 0424 361 0394 10 0.3 8342 Regi Each product requires an investment of $193,000. A rate of 10% has been selected for the net present value analysis Required 1a. Compute the cash payback period for each project. Primitive Camping Lakeside Fishing Cash Payback Period 15. 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 Primitive Camping Lakeside Fishing Present value of net cash flow total Amount to be invested 2. All of the following are true regarding the two products except a. If funds are unlimited, only the Primitive Camping product is acceptable to pursue b. Both products offer the same total net cash flows c. Because of the timing of the receipt of the net cash flows, the Primitive Campng magazine offers a higher trent value d. Both products offer the same cash payback period 23 Check My Work Check My Working Email Samene Save wom Each product requires an investment of $193,000. A rate of 10% has been selected for the net present Required: 1a. Compute the cash payback period for each project. Primitive Camping Lakeside Fishing, Cash Payback Period 1 year 2 years 3 years 1b. Compute the net present value.4 years e of $1 table presented above. If required, u 5 years: Primitive Camping Lakeside Fishing Present value of net cash flow total Amount to be invested Net present value < $195,000, A Tate di 10% has been selected for the net p Required: 1a. Compute the cash payback period for each project. Primitive Camping Lakeside Fishing Cash Payback Period 1 year 2 years 1b. Compute the net present value.) e of $1 table presented above. If requi 3 years 4 years ng Lakeside Fishing 5 years Present value of net cash flow total Amount to be invested Net present value 2. All of the following are true regarding the two products except: eBook Cash Payback Period, Net Present Value Method, and Analysis GWH Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Year Primitive Camping Lakeside Fishing 1 $106,000 $89,000 2 87,000 104,000 3 75,000 71,000 4 68,000 50,000 5 21,000 43,000 Total $357,000 $357,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 4490 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 < 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 eBook 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 $193,000. A rate of 10% has been selected for the net present value analysis. Required: 1a. Compute the cash payback period for each project. Primitive Camping Cash Payback Period Lakeside Fishing 1b. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sign to indicate a negati present value. Grimitive Camping Lakeside Fishing Primitive Camping 18F each project. Cash Payback Perlod Lakeside Fishing 1 year 1b. Compute the net present value 2 years e of $1 table presented above. If present value. 3 years ng Lakeside Fishing 4 years Present value of net cash flow total 5 years Lakeside Fishing 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. Primitive Camping Lakeside Fishing Present value of net cash flow total Amount to be invested Net present value 2. All of the following are true regarding the two products except: a. If funds are unlimited, only the Primitive Camping product is acceptable to pursue. b. Both products offer the same total net cash flows. c. Because of the timing of the receipt of the net cash flows, the Primitive Camping magazine offers a higher net present value d. Both products offer the same cash payback period. < Previous 1:32