Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Year Plant Expansion Retail Store Expansion $173,000 141,000 122,000 110,000 35,000 $144,000 170,000 116,000 81,000 70,000 Total $581,000 $581,000 Each project requires an investment of $314,000. A rate of 15% has been selected for the net present value analysis. Year 1 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 0 .558 0.386 0.322 0.247 0.162 10 Required: 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion 2 years 2 years Retail Store Expansion 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Retail Store Expansion Plant Expansion $ Total present value of net cash flow Less amount to be invested Net present value 2. Because of the timing of the receipt of the net cash flows, the plant expansion offers a higher net present value