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	$124,000	$104,000
2	102,000	122,000
3	88,000	84,000
4	79,000	59,000
5	25,000	49,000
Total	$418,000	$418,000

Each project requires an investment of $226,000. A rate of 6% has been selected for the net present value analysis.

Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	0.890	0.826	0.797	0.756	0.694
3	0.840	0.751	0.712	0.658	0.579
4	0.792	0.683	0.636	0.572	0.482
5	0.747	0.621	0.567	0.497	0.402
6	0.705	0.564	0.507	0.432	0.335
7	0.665	0.513	0.452	0.376	0.279
8	0.627	0.467	0.404	0.327	0.233
9	0.592	0.424	0.361	0.284	0.194
10	0.558	0.386	0.322	0.247	0.162

Required:

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

Project	Cash Payback Period
Plant Expansion	1 year2 years3 years4 years5 years2 years
Retail Store Expansion	1 year2 years3 years4 years5 years2 years

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

Line Item Description	Plant Expansion	Retail Store Expansion
Total present value of net cash flow	$fill in the blank 3	$fill in the blank 4
Less amount to be invested	fill in the blank 5	fill in the blank 6
Net present value	$fill in the blank 7	$fill in the blank 8

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

plant expansionretail store expansionplant expansion

offers a higher

net present valuenet cash flownet present value

.