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PR 26-2B cash payback period, net present value method, and analysis OBJ, 2, 3 Social Circle Publications new magazine products. The estimated Inc. is considering
PR 26-2B cash payback period, net present value method, and analysis OBJ, 2, 3 Social Circle Publications new magazine products. The estimated Inc. is considering two net cash flows from each product are as follows: Year Sound Cellar Pro Gamer 70,000 65,000 55,000 60,000 25,000 35,000 30,000 25,000 45,000 30,000 Total $220,000 $220,000 Each product requires an investment of s125,000. A rate of 10% has been selected for the net present value analysis. Instructions 1. Compute the following for each product: a. Cash payback period b. The net present value. Use the present value of $1 table appearing in this chapter (Exhibit 1). 2. Prepare a brief report advising management on the relative m of each of the two products
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