GWH Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Year Primitive Camping Lakeside Fishing 1 $108,000 $91,000 2 89,000 106,000 3 76,000 73,000 4 69,000 51,000 5 22,000 43,000 Total $364,000 $364,000 Present Value of $1 at Compound Interest 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 Each product requires an investment of $197,000. A rate of 12% has been selected for the net present value analysis. Required: 1a. Compute the cash payback period for each project. Cash Payback Period Primitive Camping 2 years Lakeside Fishing 2 years 1b. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sign to indicate a negative net present value. Primitive Camping Lakeside Fishing Present value of net cash flow total $fill in the blank 3 315,976 $fill in the blank 4 313,986 Amount to be invested fill in the blank 5 197,000 fill in the blank 6 197,000 Net present value $fill in the blank 7 118,976 $fill in the blank 8 116,986 2. All of the following are true regarding the two products except: If funds are unlimited, only the Primitive Camping product is acceptable to pursue. Both products offer the same total net cash flows. Because of the timing of the receipt of the net cash flows, the Primitive Camping magazine offers a higher net present value. Both products offer the same cash payback period. a