Acct 621 Assignment 2 50 Marks 1. AZTEC Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Candy Project Cracker Initial investment $400,000 $600,000 Annual net income 30,000 46,000 Net annual cash inflow 110,000 143,000 Estimated useful life 6 years Salvage value -0- 5 years The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.890 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 I a.) What is the Net Present Value of each of the two projects? (10 Marks) b) Evaluating the two projects on the Payback method, which project would you select as the more attractive. Please state your reasons why (10 Marks). 2 MaxCo has a standard of 2 hours of labor per unit, at $12 per hour. In producing 2,000 units