b) compute the net present value for each project

Problem 27-01A (Video) (Part Level Submission) U3 company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $164,800 $180,250 $206,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 14,420 16,480 21,630 14,420 12,360 13,390 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 3 4 5 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.)