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OrioleCompany is considering two capital investment proposals. Estimates regarding each project are provided below: Project Project Nuts Sour Initial investment $560000 $760000 Annual net
OrioleCompany is considering two capital investment proposals. Estimates regarding each project are provided below: Project Project Nuts Sour Initial investment $560000 $760000 Annual net income 52000 46000 Net annual cash inflow 168000 185000 Estimated useful life 5 years 6 years Salvage value 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.
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