Vulcan Chemical is considering two capital investment proposals for plant-wide battery systems. Estimates regarding each 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 -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 Nickle Cadmium is:

Group of answer choices

6.65 years.

2.05 years.

3.35 years.

2.5 years.

The net present value for Lithium Ion is:

Group of answer choices

$417,010

$635,830.

$335,830.

$217,010

The annual rate of return for Lithium Ion is:

Group of answer choices

55%.

27.5%.

15.0%.

30.0%.