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 5 Plant Expansion $164,000 134,000 116,000 105,000 32,000 $551,000 Each project requires an investment of $298,000. A rate of 20% has been selected for the net present value analysis. 6 Retail Store Expansion $137,000 161,000 110,000 77,000 66,000 $551,000 0.792 0.747 0.705 Present Value of $1 at Compound Interest 6% 10% 0.943 0.909 0.890 0.826 0.840 0.751 0.683 0.621 0.564 12% 0.893 0.797 0.712 0.636 0.567 0.507 15% 0.870 0.756 0.658 0.572 0.497 0.432 20% 0.833 0.694 0.579 0.482 0.402 0.335 7 8 9 10 Required: 0.665 0.513 0.376 0.627 0.467 0.404 0.327 0.592 0.424 0.361 0.284 0.558 0.386 0.322 0.247 0.452 1a. Compute the cash payback period for each product. Cash Payback Period Plant Expansion Retail Store Expansion 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Present value of net cash flow total Less amount to be invested Net present value 0.279 0.233 0.194 0.162 Plant Expansion Retail Store Expansion A