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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

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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 product are as follows: Year Primitive Camping Lakeside Fishing 1 $143,000 $120,000 140,000 Nm 117,000 101,000 96,000 91,000 67,000 58,000 29,000 5 $481,000 $481,000 Total Present Value of $1 at Compound Interest 209 15% 12% 10% 696 Year 0.870 0.833 0.993 0.909 0.943 1 0.694 0.756 0.797 0.826 0.890 2 0.579 0.658 0.712 0.751 0.840 3 0.482 0.572 0.636 0.683 0.792 4 0.402 0.497 0.567 0.621 0.247 5 0.333 0.507 0.432 0.564 6 0.705 EUROta essignmentSessionLocator Binprogre... to 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 regoires an investment of $260,000. A rate of 12% has been selected for the not present value analyse, Required: 1a, Compute the cash payback period for each project Cash Payback Period Primitive Camping Lakeside Fishing 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 Primitive Camping Lakeside Fishing Present value of net cash flow total ning 1a. Compute the cash payback period for each project. Cash Payback Period Primitive Camping Lakeside Fishing ib. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sion 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. 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 printive Camping magazine offers a higher net resent value d. Both products offer the same cash payback period.

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