Monty Company is considering two capital investment proposals. Estimates regarding each project are provided below: Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value Periods 5 6 Project Soup 9% $325000 30000 100000 O 4.6 years. O 7.3 years. O 4.1 years. O 10.8 years. 5 years Present Value of an Annuity of 1 0 The company requires a 10% rate of return on all new investments. 10% 11% 12% 3.89 3.791 3.696 3.605 4.486 4.355 4.231 4.111 The cash payback period for Project Nuts is Project Nuts $600000 46000 146000 6 years 0

Monty Company is considering two capital investment proposals. Estimates regarding each project are provided below: The company requires a 10% rate of return on all new investments. The cash payback period for Project Nuts is 4.6 years 7.3 years. 4.1 years. 10.8 years