Question 18 Use the following information for questions #18 #19, and 820 Vulcan Chemical is considering two capital investment proposals for plant wide battery systems. Estimates regarding cach project are provided below: Lithiulon Nickle Codinium Initial investment $200.000 $300.000 Annual net income 30,000 44,000 Nel anual cash inilun 110.000 146,000 Estimated useful life 5 years 6 years Salvage vaun 0 0 The company requires a 10% rate of rotum on all new irwestments Present Valuan Annuity of 1 Periods 5% 1086 115 125 5 3.890 3.791 3.696 3.605 4.484 4231 4 111 The cash paytaxock period for Nickle Cadmium is 02.03 WAM 2.5 years. 0335 Question 19 Use the following information for questions #18, 19, and #20 Vulcan Chemical is considering two capital investment proposals for plant-wicie battery systems. Estimates regarding exch project are provided below Lithium Ion Nickle Cadmium Initial investment $200,000 $300.000 Annual net income 30,000 46,000 Net annual cash inflow 110.000 146,000 Estimated useful life 5 years 6 years Salvage value The company requires a 10% rate of retum on all new investments Present Value of an Annuity of 1 99 10% 11% 129 Perioris 5 3.890 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 The net present value for Lithium Ion is 05335800 O $635.831 O $217010 0 3417010 Use the following information for questions #18, 819, and 420 Vulcan Chemical is considering two capital investment proposals for plant-wide battery systems. Estimates regarcing each project are provided below: Lithium IAD Nickle Cadmium Initial investment $200.000 S300 000 Annual net income 30,000 44,000 Net annual cash inflow 110,000 146.000 Estimated useful life 5 years 6 years Salvage value The company requires a 10% rate of return on al new inwestments Present Value of an Annuity of 1 Pericia 9% 10% 11% 1223 5 3.890 3.791 3.496 3.605 4.486 4.355 4.231 4.111 The annual rate of return for Lithiurn lon is: 15.0% 30.0 55% 27.5%