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: Primitive Camping Lakeside Fishing Year 1 5162,000 2 $135,000 199,000 132,000 3 114,000 103,000 4 109,000 76,000 5 33,000 5544,000 65,000 5544,000 Total Present Value of $1 at Compound Interest Year 6% 10% 1296 15% 20% 1 0.943 0.909 0.893 0,870 0.833 2 0.800 0.826 0.297 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 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 Each product requires an investment of $294,000. A rate or 12% has been selected for the net present value analysis. Required: 1a. Compute the cash payback period for each project. Cash Payback Period Primitive Camping 3 years X Lakeside Fishing 3 years X required: 1a. Compute the cash payback period for each project. Cash Payback Period Primitive Camping 3 years Lakeside Fishing 3 years 11. Compute the net present value. Use the present value of $1 table presented above. It 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. It funds are unlimited, only the Primitive Camping product is acceptable to pursue Both products offer the same total net cash flows. c. Because of the timing of the receipt or the net cash flows, the Primitive Camping magazine offers a higher present van d. Both products offer the same cash payback period