Sunland Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Nuts Project Soup $420000 38000 126000 $620000 46000 151000 Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value 5 years 0 6 years 0 The company requires a 10% rate of return on all new investments Periods Present Value of an Annuity of 1 9% 10% 11% 12% 3.89 3.791 3.696 3.605 4.486 4.355 4.231 4.111 5 6 The internal rate of return for Project Nuts is approximately