Splish BrothersCompany is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $640000 $840000 Annual net income 60000 46000 Net annual cash 192000 204000 inflow Estimated useful life 5 years 6 years Salvage value 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 internal rate of return for Project Nuts is approximately O10%. 11%. O12%. O9%.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Splish BrothersCompany is considering two capital investment proposals. Estimates regarding each project are provided below:
Project
Project Nuts
Soup
Initial investment
$640000
$840000
Annual net income
60000
46000
Net annual cash
192000
204000
inflow
5 years
6 years
Estimated useful life
Salvage value
The company requires a 10% rate of return on all new investments.
Present Value of an Annuity.
of 1
Periods
9%
10%
11% 12%
3.89
3.791 3.696 3.605
6
4.486 4.355 4.231 4.111
The internal rate of return for Project Nuts is approximately
O10%.
O11%.
O12%.
09%.
Transcribed Image Text:Current Attempt in Progress Splish BrothersCompany is considering two capital investment proposals. Estimates regarding each project are provided below: Project Project Nuts Soup Initial investment $640000 $840000 Annual net income 60000 46000 Net annual cash 192000 204000 inflow 5 years 6 years Estimated useful life Salvage value The company requires a 10% rate of return on all new investments. Present Value of an Annuity. of 1 Periods 9% 10% 11% 12% 3.89 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 The internal rate of return for Project Nuts is approximately O10%. O11%. O12%. 09%.
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