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 Retail Store Year Plant Expansion Expansion $107,000 $89,000 2 87,000 105,000 75,000 72,000 65.000 50,000 5 22,000 43,000 Total $359,000 $359,000 Each project requires an investment of $194,000. A rate of 5% has been selected for the net present value analysis Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.043 0.909 0.093 0.870 0.833 2 0.890 0.826 0.797 0.756 0.654 3 0.840 0.751 0.712 0.658 0.570 4 0.792 0.683 0.636 0.572 0.482 S 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 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.264 0.194 10 0.558 0.386 0.322 0.247 0.162) Required: 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 285,556 $ 282,556 Less amount to be invested -194,000 -194,000 Net present value 91,556 88,556 2. Because of the timing of the receipt of the net cash flows, the plant expansion offers a higher net present value