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Compute the net present value of Project Nuts

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Question - Carr Company is considering two capital investment proposals. It requires a 10% return on its investments. 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-

Required - Compute the net present value of Project Nuts?

Reference no: EM132686469

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