Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Excel Year 1 2 3 4 5 Total Sound Cellar $ 65,000 60,000 25,000 25,000 45,000 $220,000 Pro Gamer $ 70,000 55,000 35,000 30,000 30,000 $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: a. Cash payback period. b. The net present value. Use the present value of $1 table appearing in this chapter (Exhibit 2). Answer Prepare a brief report advising management on the relative merits of each of the two products. 2