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

Project Trucks Project Cars

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.

The annual rate of return for Project Trucks is

Group of answer choices

55%

15.0%.

7.5%.

27.5%.