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Cheyenne Company is considering two capital investment proposals. Estimates regarding each project are provided below: Initial investment Annual net income Net annual cash inflow Estimated

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Cheyenne Company is considering two capital investment proposals. Estimates regarding each project are provided below: Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value Project Soup $460000 30000 110000 5 years Project Nuts $432000 46000 146000 6 years 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 $203830. $72000. $140206. $635830

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