11. (TCO 6) Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below.

	Project Soup	Project Nuts
Initial Investment	$600,000	$900,000
Annual Net Income	$30,000	$63,000
Annual Cash Inflow	$150,000	$213,000
Salvage Value	$0	$0
Estimated Useful Life	5 years	6 years

The company requires a 10% rate of return on all new investments. Part (a): Calculate the payback period for each project. Part (b): Calculate the net present value for each project. Part (c): Which project should Carr Company accept and why? (Points : 30)

12. (TCO 6) Corn Doggy Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants will cost $262,000. In addition, Austin estimates that the new machine will increase the company