Obj. 2,3 mer, 465 PR 12-2B Cash payback period, net present value method, and analysis for a service company Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Year Sound Cellar Pro Gamer 1 $ 65,000 $ 70,000 2 60,000 55,000 3 25,000 35,000 4 25,000 30,000 5 45,000 30,000 Total $220,000 $220,000 Each product requires an investment of $125,000. A rate of 10% has been selected for the net present value analysis. Instructions 1. Compute the following for each product: Cash payback period. b. The net present value. Use the present value table appearing in Exhibit 2 of this chapter. 2. Prepare a brief report advising management on the relative merits of each of the two products. a