Question: Help please! Sunland Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment Annual net
Help please!
Sunland Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value $440000 30000 110000 5 years $612000 146000 6 years The company requires a 10% rate of return on all new investments. Periods 5 6 Present Value of an Annuity of 1 9% 11% 12% 3.89 3.791 3.696 3.605 4.486 4.355 4.231 4.111 The net present value for Project Nuts is O $23830. O $635830. o $160206. O $102000.
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