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

Project Soup Project Nuts

Initial investment $400,000 $600,000

Annual net income 30,000 46,000

Net annual cash inflow 110,000 146,000

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 3.890 3.791 3.696 3.605

6 4.486 4.355 4.231 4.111

The cash payback period for Project Nuts is:

Group of answer choices

4.1 years.

6.7 years.

13.3 years.

5.0 years.

The net present value for Project Nuts is:

Group of answer choices

$200,330.

$635,830.

$100,000.

$35,830.

The annual rate of return for Project Soup is:

Group of answer choices

55%.

27.5%.

15.0%.

7.5%.