Use the Following Information for Questions 112-115 $\text { The company requires a } 10 \% \text { rate of return on all new investments. }$

question 64

Multiple Choice

Use the following information for questions 112-115.
Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below: $\begin{array}{lrr}&\text { Project Soup }&\text { Project Nuts }\\ \text { Initial investment } & \$ 400,000 & \$ 600,000 \\\text { Annual net income } & 30,000 & 46,000 \\\text { Net annual cash inflow } & 110,000 & 146,000 \\\text { Estimated useful life } & 5 \text { years } & 6 \text { years } \\\text { Salvage value } & -0- & -0-\end{array}$

$\text { The company requires a } 10 \% \text { rate of return on all new investments. }$

$\text { Present Value of an Annuity of } 1$
$\begin{array}{lllll}\text { Periods } & 9 \% & 10 \% & 11 \%& 12 \%\\5 & 3.890 & 3.791 & 3.696 & 3.605 \\6 & 4.486 & 4.355 & 4.231 & 4.111\end{array}$
-The net present value for Project Nuts is

• A) $635,830.
• B) $200,330.
• C) $100,000.
• D) $35,830.

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Definitions:

Quadriceps Femoris

A large muscle group that includes the four prevailing muscles on the front of the thigh; it is crucial for walking, running, and jumping.

Buttocks

The two rounded portions of the anatomy, located on the posterior of the pelvic region in humans and many other primates.

Deltoid

The deltoid is a large, triangular muscle responsible for lifting the arm and giving the shoulder its range of motion.

Bursa

A sac or pouch in connective tissue chiefly around joints.