JAN FEB AR HAY JUN JUL AUG OGT JANV FEV HARS AVRIL NA JUN JUL AOUT ET NOV DEC OCY NOV DC 13*5678 11 13 14 15 16 17 18 19 20 21 22 28 17 11 16 SUBJECT/ SUJET DOT NOV DEC OCT NOV DEC N21 10:31 to driving Sales and a letter Gus L 7. [4 marks] Fancy Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Salad Initial investment $450,000 $550,000 Annual net income 147,000 135,000 125,000 Net annual cash inflow 135,000 Estimated useful life 5 years 6 years Salvage value 50,000 60,000 The company requires a 9% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.89 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 Present Value of 1 10% 9% 11% 12% Periods 0.593 5 0.621 0.567 0.650 6 0.596 0.5644 0.5346 0.5066 What is the net present value of each investment and which is the better investment for the company to make? Should they invest in Project Soup or Project Salad