=+E15-6 Cash payback method Ob] 2 SPREADSHEET y

a. Cosmetics: 4 years Family Care Products Company is considering an investment in one oftwo new product lines.

The investment required for either product line is $600,000. The net cash flows associated with each product are as follows:

Year Liquid Soap Cosmetics 1 $120,000 $165,000 2 120,000 155,000 3 120,000 140,000 4 120,000 140,000 5 120,000 110,000 6 120,000 90,000 7 120,000 80,000 8 120,000 80,000 Total $960,000 $960,000