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Carr 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

Carr 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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