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Business, 23.05.2020 04:02 emilyproce

Blue SpruceCompany is considering two capital investment proposals. Estimates regarding each project are provided below:
Project Soup Project Nuts
Initial investment $350000 $468000
Annual net income 30000 46000
Net annual cash inflow 110000 146000
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 3.89 3.791 3.696 3.605
6 4.486 4.355 4.231 4.111
The net present value for Project Nuts is:.
a) $78000.
b) $635830.
c) $167830.
d) $250206.

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Blue SpruceCompany is considering two capital investment proposals. Estimates regarding each project...
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