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Blossom Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Nuts Project Soup $475000 30000 110000 $672000 Initial investment

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Blossom Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Nuts Project Soup $475000 30000 110000 $672000 Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value 46000 186000 5 years 6 years 0 0 The company requires a 10% rate of return on all new investments. Periods 5 6 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 $112000 $138030. $810030. $289646

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