Carr Company Is Considering Two Capital Investment Proposals The Company Requires A

Carr Company is considering two capital investment proposals.Estimates regarding each project are provided below: $\begin{array}{ccc}&\underline{\text { Project Soup }}&\underline{\text { Project Nuts }}\\\text { Initial investment } & \$ 270,000 & \$ 600,000 \\\text { Annual net income } & 27,000 & 45,000 \\\text { Net annual cash inflow } & 90,000 & 142,000 \\\text { Estimated useful life } & 5 \text { years } & 6 \text { years } \\\text { Salvage value } & -0- & -0-\end{array}$
The company requires a $10 \%$ rate of return on all new investments.
$\quad$$\quad$$\quad$$\underline{\text { Present Value of an Annuity of } 1}$
$\begin{array}{lllll}\underline{\text { Period }} &\underline{9 \%} & \underline{10 \%}&\underline{11 \%} &\underline{12 \%}\\5 & 3.890 & 3.791 & 3.696 & 3.605 \\6 & 4.486 & 4.355 & 4.231 & 4.111\end{array}$ The annual rate of return for Project Soup is

A) 13.3%.
B) 10%.
C) 33.3%.
D) 30%.