Question
CarrCompany is considering two capital investment proposals. Estimates regarding each project are provided below: Project Project Nuts Soup Initial investment $400000 $600000 Annual net income
CarrCompany is considering two capital investment proposals. Estimates regarding each project are provided below: Project Project Nuts Soup Initial investment $400000 $600000 Annual net income 30000 46000 Net annual cash 110000 146000 inflow 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% 5 12% 3.89 3.791 3.696 3.605 11% 6 4.486 4.355 4.231 4.111 The net present value for Project Nuts is O $35830. O $200206. O $635830. O $100000
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