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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

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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- The company requires a 10% rate of return on all new investments. The cash payback period for Project Cars is 6.7 years. 13.3 years. 5.0 years. 4.1 years

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