36) MarigoldCompany is considering two capital investment proposals. Estimates regarding each project are provided below:

Project Soup Project Nuts

Initial investment $305000 $504000

Annual net income 30000 46000

Net annual cash 110000 156000

inflow

Estimated useful life 5years 6years

Salvage value 0 0

The company requires a10% rate of return on all new investments.

Present Value of an Annuity of

Periods 9% 10% 11% 12%

5 3.89 3.791 3.696 3.605

6 4.486 4.355 4.231 4.111

The net present value for Project Nuts is

a. $679380.

b. $336316.

c. $84000.

d. $175380.