JP Company is considering two capital investment proposals. Estimates rega Project Echo Project Initial investment $400,000 $56: Annual cash inflows: Year 1 125,000 14 Year 2 125,000 - 14 Year 3 125,000 Year 4 125,000 Year 5 125,000 The company requires an 12% rate of return on all new inve payback period of 4.0 years to be acceptable. 14 1. The cash payback period for Project Echo is a. 4.0 years. b. 3.5 years. c. 3.20 years. d. 0.31 years. (Show your work for the answer selected in #1 above.) _years. (Show yo 2. The cash payback period for Project Charlie is _ (Show yo 3. The net present value for Project Echo is $ 4. The net present value for Project Charlie is a. $ 568,000 b. $ 142,000. c. $ (56,121). d. $ 56,121. (Show your work for the answer selected in #4 above.) nd on your calculations for NPV and payback in #1 - 84 above, JP Company is considering two capital investment proposals. Estimates regarding each project are: Project Echo Project Charlie Initial investment $400,000 $568,000 Annual cash inflows: Year 1 125,000 142,000 Year 2 125,000 142,000 Year 3 125,000 142,000 Year 4 125,000 142,000 Year 5 125,000 142,000 The company requires an 12% rate of return on all new investments and a maximum payback period of 4.0 years to be acceptable. 1. The cash payback period for Project Echo is a. 4.0 years. 400,000 - 3.20 years - Accepted b. 3.5 years. 125,000 C, 3.20 years. d. 0.31 years. (Show your work for the answer selected in #1 above.) years. (Show your work) 2. The cash payback period for Project Charlie is 568,000 :4 142,000 3. The net present value for Project Echo is $__ _(Show your work) 4. The net present value for Project Charlie is a. $ 568,000 b. $ 142,000. c. $ (56,121). d. $ 56,121. (Show your work for the answer selected in #4 above.) E 5 Rased on vour calculations for NPV and payback in #1 - #4 above, which project should be chosen