Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Year 1 2 3 4 5 Total Year 1 2 3 4 Each project requires an investment of $229,000. A rate of 6% has been selected for the net present value analysis. Present Value of $1 at Compound Interest 6% 10% 12% 0.909 0.893 0.826 0.797 0.751 0.712 I 0.683 0.636 0.621 0.567 0.564 0.507 0.513 0.452 0.467 0.404 0.424 0.361 5 6 96 7 8 Plant Expansion 9 $126,000 103,000 89,000 81,000 25,000 $424,000 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 Retail Store Expansion 15% 0.870 0.756 0.658 0.572 0.497 $105,000 124,000 85,000 59,000 51,000 $424,000 0.432 0.376 0.327 0.284 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 10 Required: 0.558 0.386 Plant Expansion Retail Store Expansion 0.322 1a. Compute the cash payback period for each project. Cash Payback Period 2 years 2 years 0.247 Total present value of net cash flow. Less amount to be invested 0.162 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 Net present value 2. Because of the timing of the receipt of the net cash flows, the offers a higher i