Home Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Year Home & Garden Music Beat 1 $151,000 $127,000 2 124,000 148,000 3 107,000 102,000 4 97,000 71,000 5 30,000 61,000 Total $509,000 $509,000 Each product requires an investment of $275,000. A rate of 12% has been selected for the net present value analysis. 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 Required: 1a. Compute the cash payback period for each product. Cash Payback Period Home & Garden Music Beat 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Home & Garden Music Beat Present value of net cash flow total $ 63161 $ Less amount to be invested $ $ Net present value $ $ 2. Because of the timing of the receipt of the net cash flows, the magazine expansion offers a higher .