Cash payback method EX 25-2 Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with Year 1 2 3 4 Liquid Soap $170,000 150,000 120,000 100,000 70,000 40,000 40,000 30,000 $720,000 Body Lotion $ 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 $720,000 6 7 8 Total (Continued) Chapter 25 Capital Investment Analysis A. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line. Why is one product line preferred over the other, even though they both have the same total net cash flows through eight periods? B