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7. Cash Payback Period Cash...

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Accounting

7. Cash Payback Period
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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: Year Plant Expansion Retail Store Expansion 1 $163,000 $136,000 2 133,000 160,000 3 115,000 110,000 4 104,000 77,000 5 33,000 65,000 Total $548,000 $548,000 Year Each project requires an investment of $296,000. A rate of 20% has been selected for the net present value analysis Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.792 0.256 0.694 3 0.840 0.751 0.712 0.658 6.579 0.792 0.683 0.636 0.572 0:482 Year 6% 10% 12% 15% 2096 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 0.712 0.658 0.579 0.751 0.683 4 0.792 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 0 0.564 0.507 0.432 0.335 0.705 0.665 7 0.513 0.376 0.452 0.404 0.279 0.233 8 0.627 0.467 0.327 9 0.592 0.424 0.361 0.284 0.194 0.162 10 0.558 0.386 0.322 0.247

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