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Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Year Plant Expansion Retail Store

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 1 $125,000 $104,000 2 102,000 123,000 3 88,000 84,000 4 80,000 59,000 5 Total 25,000 $420,000 50,000 $420,000 Each project requires an investment of $227,000. A rate of 6% has been selected for the net present value analysis.

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