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The numbers in the first image corresponds to all 3 questions Use the following information for questions #18, #19, and #20 Carr Company is considering
The numbers in the first image corresponds to all 3 questions
Use the following information for questions #18, #19, and #20 Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $400,000 $600,000 Annual net income 30,000 46,000 Net annual cash inflow 110,000 146,000 Estimated useful life 5 years 6 years Salvage value -0- -0- The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.890 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 The cash payback period for Project Nuts is: 6.7 years. 5.0 years. 4.1 years. 13.3 years. The net present value for Project Nuts is: $35,830. $200,330. O $635,830. O $100,000. The annual rate of return for Project Soup is: 15.0%. 7.5%. 55%. 27.5%Step by Step Solution
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