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Bramble Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $330000 $624000 Annual net

Bramble Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Project Soup Project Nuts
Initial investment $330000 $624000
Annual net income 30000 46000
Net annual cash inflow 110000 146000
Estimated useful life 5 years 6 years
Salvage value 0 0

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 3.89 3.791 3.696 3.605
6 4.486 4.355 4.231 4.111

The net present value for Project Nuts is

$11830.

$635830.

$270206.

$104000.

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