Year 1 Cash Payback Period, Net Present Value Method, and Analysis Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows: Plant Expansion Retail Store Expansion $129,000 $108,000 105,000 126,000 91,000 87,000 82,000 61,000 26,000 51,000 Total $433,000 $433,000 N 3 4 5 Each project requires an investment of $234,000. A rate of 12% 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 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.284 0.361 0.322 0.194 0.162 10 0.558 0.386 0.247 Required: la. Compute the cash payback period for each project. Cash Payback Period Plant Expansion 2 years Retail Store Expansion 2 years 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. Plant Expansion Retail Store Expansion Total present value of net cash flow 282,992 X s 277,685 x Less amount to be invested 234,000 234,000 S Net present value 48,992 X 43,685 X