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NLTE 75% 3:55 PM coursehero.com/qa/atta + 10 .. . GWH Publications Inc. is considering two new magazine products. The estimated net cash flows from each
NLTE 75% 3:55 PM coursehero.com/qa/atta + 10 .. . 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 $164,000 $138,000 135,000 161,000 W N 116,000 111/000 105,000 77,000 33,000 66,000 Tota $553,000 $553,000 Present Value of $1 at Compound Interest Year 10% 12% 150%% 20% 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0:756 0.694 13 0.840 0.751 0.712 0.658 0.5,79 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0:507 0.432 0.335 7 0.665 0.513 0:452 0.376 10 279 X +OO .. NGLTE 75% 3:56 PM coursehero.com/qa/attz + 10 .. . 8 0.627 0.467 0.404 0.327 0.233 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 $299,000. A rate of 10% has been selected for the net present value analysis. Required: la. 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 Amount to be invested Net present value $ X +
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