Cash Payback Period, Net Present Value Method, and Analysis

McMorris Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows:

Year	Canadian Cycling		European Hiking
1	$173,000		$145,000
2	142,000		170,000
3	122,000		117,000
4	111,000		82,000
5	35,000		69,000
Total	$583,000		$583,000

Each product requires an investment of $315,000. A rate of 10% has been selected for the net present value analysis. .

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.

	Canadian Cycling		European Hiking
Present value of net cash flow total	$		$
Amount to be invested
Net present value	$		$