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

Calculate annual rate of return and net present value of lithium ion.