Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Retail Store Expansion Plant Expansion Year 1 $110,000 $92,000 2 90,000 108,000 78,000 74,000 4 70,000 52,000 5 22,000 44,000 $370,000 $370,000 Total Each project requires an investment of $200,000. A rate of 12 % 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 0.890 2 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 0.572 4 0.792 0.683 0.636 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 0.467 0.327 8 0.627 0.404 0.233 C 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. Cash Payback Period 2 years Plant Expansion Retail Store Expansion 2 years 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 offers a higher net present value 2. Because of the timing of the receipt of the net cash flows, the plant expansion