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Blossom Company is considering two capital investment proposals. Estimates regarding each project are provided below: Initial investment Annual net income Net annual cash inflow Estimated

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Blossom Company is considering two capital investment proposals. Estimates regarding each project are provided below: Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value Project Soup $475000 30000 110000 5 years 0 Project Nuts $672000 46000 186000 6 years The company requires a 10% rate of return on all new investments. Periods 5 Present Value of an Annuity of 1 9% 10% 11% 12% 3.89 3.791 3.696 3.605 4.486 4.355 4.231 4.111 The net present value for Project Nuts is $289646. $810030. $112000. $138030

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