Carr Company Is Considering Two Capital Investment Proposals The Cash Payback Period for Project Soup Is
A)13

question 6

Multiple Choice

Carr Company is considering two capital investment proposals.Estimates regarding each project are provided below: $\begin{array}{ccc}&\text { Project Soup }& \text { Project Nuts }\\\text { Initial investment } & \$ 270,000 & \$ 600,000 \\\text { Annual net income } & 27,000 & 45,000 \\\text { Net annual cash inflow } & 90,000 & 142,000 \\\text { Estimated useful life } & 5 \text { years } & 6 \text { years } \\\text { Salvage value } & -0- & -0-\end{array}$ The cash payback period for Project Soup is

• A)13.5 years.
• B)5 years.
• C)3.9 years.
• D)3 years.