(Solution) - Elite Apparel Inc is considering two investment projects The estimated -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:

Each project requires an investment of $900,000. A rate of 15% has been selected for the net present value analysis.
Instructions
1. Compute the following for each product:
a. Cash payback period.
b. The net present value. Use the present value of $1 table appearing in this chapter (Exhibit 2).
2. Prepare a brief report advising management on the relative merits of each project.