Question 18 Sunland Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Echo Project Charlie Initial investment $400000 $600500 Annual net income 20500 42400 Net annual cash 99000 143000 Inflow Estimated useful life 5 years 6 years Salvage value 0 0 The company requires an 11% rate of return on all new investments. Periods Present Value of an Annuity of 1 9% 10% 11% 12% 3.890 3.791 3.696 3.605 4.486 4.355 4.231 4.111 5 6 The internal rate of return for Project Charlie is approximately 10% 12% 9% 11%