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ny is considering two capital investment proposals. Estimates regarding each project are provided below Project Soup Project Nuts Annual net income Net annual cash inflow

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ny is considering two capital investment proposals. Estimates regarding each project are provided below Project Soup Project Nuts Annual net income Net annual cash inflow Estimated useful life Salvage value $400000 16000 94000 5 years $600000 32000 117000 6 years The company requires a 10% rate of return on all new investments. uity of 1 Periods % 10% 11% 12% 3.89 3.791 3.696 3.605 4.486 4.355 4.231 4.111 The annual rate of return for Project Soup is 23.5%. 47%. 4.0%. 8%

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