Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Required:

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

Cash Payback Period

Plant Expansion

Retail Store Expansion

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

Because of the timing of the receipt of the net cash flows, the

offers a higher

Each project requires an investment of $$217,000.$ A rate of $15\%$ has been selected for the net present value analysis.