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:

Each project requires an investment of $$262,000.$ A rate of $6\%$ has been selected for the

net present value analysis.

Required:

$1$a$.$ Compute the cash payback period for each project.

Cash Payback Period

Plant Expansion

Retail Store Expansion

$1$b$.$ Compute the net present value. Use the present value of $$1$ table above. If

required, round to the nearest dollar.

Because of the timing of the receipt of the net cash flows, the

higher