Elite apparel inc. is considering projects.The estimated net cash flows from each project are as follows:

Year. Plant Expansion. Retail store Expansion

1. $155,00. $129,000

2. 126,000. $152,000

3. 109,000. 104,000

4. 99,000. 73,000

5. 31,000. 62,000

Total. $520,000. $520,000

Each project requires an investment of $281,000. A rate of 10% has been selected for the net present value analysis.

Present Value of $1 at Compound Interest

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

Required:

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

Plant expansion

Retail Store Expansion

1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar.

Plant Expansion. Retail Store Expansion

Present Value of net cash flow total

Less amount to be invested

Net present value

2. Because of the timing of the receipt of the net cash flows,the___ offers a higher____?