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Sean Payback Period, Net Present Value Method, and Analysis Este Apparel Inc. is considering two investment projects. The estimated net cash flows from each
Sean Payback Period, Net Present Value Method, and Analysis Este Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Year Plant Expansion $128,000 Retail Store Expansion $107,000 1 2 105,000 " 91,000 4 2,000 5 25,000 Total $431,000 126,000 86,000 60,000 52,000 $431,000 Each project requires an investment of $233,000. A rate of 10% has been selected for the net present value analysis Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233
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