Sheridan Company is considering two capital investment proposals. Estimates regarding each project are provided below:

The company requires a 10% rate of return on all new investments. The cash payback period for Project Nuts is

Project Soup Project Nuts Initial investment $420000 $540000 Annual net income 30000 46000 Net annual cash inflow 110000 146000 Estimated useful life 5 years 6 years Salvage value 0 0 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 3.70 years. 14.00 years. 5.25 years. O 6.21 years