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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. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.890 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 The net present value for Project Cars is $35,830. $200,330. O $635,830. O $100,000

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