Business, 30.06.2020 18:01 heyysiirr3354

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:.

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Carr Company is considering two capital investment proposals. Estimates regarding each project are p...

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