Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follow:

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.

1. Calculate the payback period for the two products.
2. Calculate the net present value for the two products.