Current Attempt in Progress 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 $187.250 $208.000 Capital investment $171,200 Annual net income: Year 1 14.980 19,260 28,890 2 14,980 18,190 24,610 3 14.980 17,120 22.470 4 14,980 12,840 13,910 5 14,980 9,630 12,840 Total $74,900 $77,040 $102,720 $ 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.) Click here to view the factor table. (a) Your answer is correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, eg. 10.50.) Project Bono 3.48 years Project Edge 3.40 years Project Clayton 3.13 years eTextbook and Media Attempts: 1 of 5 used : 5 (b) Your answer is correct. . Compute the net present value for each project. (Round answers to decimal places, eg. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value -6207 -7824 4291 e Textbook and Media Attempts: 1 of 5 used (c) Your answer is correct. Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation. (Round answers to 2 decimal places, eg. 10.50%.) Project Bono Project Edge Project Clayton Annual rate of return 17.50 % 16.46 % 19.75 % eTextbook and Media Attempts: 1 of 5 used (d) Rank the projects on each of the foregoing bases. Which project do you recommend? Project Cash Payback Net Present Value Annual Rate of Return Bono Edge Clayton The best project is Save for Later Attempts: 0 of 5 used Submit