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 $176,000 Project Edge $192.500 Project Clayton $212,000 Capital investment Annual net income: Year 1 2 3 15.400 15,400 15,400 15,400 15,400 $77,000 19,800 18,700 17.600 13,200 9.900 $79,200 29.700 25,300 23.100 14,300 13,200 $105,600 4 5 Total 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. Your answer is partially 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 3.19 years 1 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 5016 Net present value $ 6830 $ 38043 eTextbook and Media X Your answer is incorrect. Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, es. 10.50%) Project Bono Project Edge Annual rate of return 8.75 % Project Clayton I 9.96 8.23 %6 % e Textbook and Media Your answer is correct