Larkspur Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Nuts Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value Project Soup $410000 30000 110000 $564000 46000 146000 5 years 6 years 0 0 The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 9% 10% 11% 12% Periods 5 3.89 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 The cash payback period for Project Nuts is O 5.13 years. 13.67 years