Cash 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 1 $450,000 $500,000 2 450,000 400,000 3 340,000 350,000 180,000 250,000 5 180,000 200,000 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. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 4 0.870 0.893 0.833 1 0.943 0.909 0.694 0.756 2 0.890 0.826 0.797 0.712 0.658 0.579 3 0.751 0.840 0.572 0.482 0.792 0.636 4 0.683 0.402 0.497 5 0.747 0.621 0.567 0.335 0.432 6 0.705 0.564 0.507 0.452 0.376 0.279 7 0.513 0.665 0.404 0.327 0.233 8 0.627 0.467 0.424 0.361 0.284 0.194 0.592 9 0.322 0.247 0.162 10 0558 0.386 ebook 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 Required: 1a. Compute the cash payback period for each project Cash Payback Period Plant Expansion 2 years Retail Store Expansion 2 years 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 Total present value of net cash flow 1004.50 X 100.650 X Less amount to be invested Net present value offers a higher net present value 2. Because of the timing of the receipt of the net cash flows, the retail store expansion