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Carr Company is considering two capital investment proposals. Estimates regarding eac project are provide below:

Carr Company is considering two capital investment proposals.  Estimates regarding eac project are provide below:
                            Project Soup        Project Nuts
Initial investment            $400,000             $600,000
Annual Net Income               20,000               42,000
Net annual cash inflow         100,000              142,000
Estimated useful life           5 years               6 years
Salvage value                     0                     0
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              3.890   3.791   3.696    3.605
    6              4.486   4.355   4.231    4.111
    The cash payback period for Project Soup is
1.  20 years
2.  10 years
3    5 years
4.   4 years

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