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:

Blood Sugar Levels

The concentration of glucose in the blood, which is a critical aspect of metabolic health and energy supply for the body.

Energy

The capacity to do work or produce change, existing in various forms such as kinetic, potential, thermal, electrical, chemical, and nuclear.

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Chemical substances produced by the body that regulate the development and function of reproductive organs and secondary sexual characteristics.

Puberty

The developmental stage during which children mature sexually and become capable of reproduction.