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PR 25-2B Cash payback period, net present value method, and analysis for a service company Social Circle Publications Inc. is considering two new magazine products.
PR 25-2B 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: OBJ. 2, 3 V1. b. Pro Gamer, 49,465 Sound Cellar Pro Gamer 70,000 55,000 35,000 30,000 30,000 $220,000 Year 65,000 60,000 25,000 25,000 45,000 $220,000 Total Each product requires an investment of $125,000. A rate of 10% has been selected for the net present value analysis. I. Compute the following for each product: a. Cash payback period. b. The net present valuc. Usce the present valuc of $1 table appcaring in this chapter (Exhibit 2). 2. Prepare a brie report advising managment on the relative merits of each of the two products
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