Project Soup Project Nuts $345000 $444000 Initial investment Annual net income 30000 46000 Net annual cash inflow 110000 146000 Estimated useful life 5 years 6 years Salvage value The company requires a 10% rate of return on all new investments. Present Value of an Annuity of Periods 10% 9% 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 6.21 years. 11.50 years. 3.04 years. 4.31 years. Project Soup Project Nuts $400000 $600000 Initial investment 50000 Annual net income 66000 Net annual cash inflow 126000 157000 Estimated useful life 5 years 6 years Salvage value The company requires a 10% rate of return on all new investments. Present Value of an Annuity of Periods 10% 11% 12% 9% 3.89 3.791 3.696 3.605 4.486 4.355 4.231 4.111 6 The annual rate of return for Project Soup is 63%. 12.5%. 25%. 31.5%