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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
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: 2. All of the following are true regarding the two products except: a. If funds are unlimited, only the Primitive Camping product is acceptable to pursue. b. Both products offer the same total net cash flows. c. Because of the timing of the receipt of the net cash flows, the Primitive Camping magazine offers a higher net present value. d. Both products offer the same cash payback period. Each product requires an investment of $301,000. A rate of 15% has been selected for the net present value analysis. Required: 1a. Compute the cash payback period for each project. 1b. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sign to indicate a negative net present value. Present Value of $1 at Compound Interest
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