Present Value of $1 at Compound Interest

Be You Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:
Each project requires an investment of $480,000. A rate of 15% 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 0.361 0.284 0.194
10 0.558 0.386 0.322 0.247 0.162
1. a. Compute the cash payback period for each project.
b. Compute the net present value. Use the present value of $1 table
above. If required, use the minus sign to indicate a negative net
present value.
2. Prepare a brief report advising management on the relative merits
of each project. The input in the box below will not be graded, but may
be reviewed and considered by your instructor.

 

"Is this question part of your assignment? We Can Help!"