Question
arr Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $520,000 $715,000 Annual net
arr Company is considering two capital investment proposals. Estimates regarding each project are provided below:
| Project Soup | Project Nuts |
| Initial investment | $520,000 | $715,000 |
| Annual net income | 28,000 | 38,000 |
| Net annual cash inflow | 95,300 | 142,000 |
| Estimated useful life | 10 years | 15 years |
| Salvage value | $15,000 | $25,000 |
The company requires a 9% rate of return on all new investments.
The net present value for Project Soup is....???/
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
