*PLEASE ONLY ANSWER THE INCORRECT ANSWER PART, THANK YOU.*

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		$168,000		$183,750		$202,000
Annual net income:
Year 1		14,700		18,900		28,350
2		14,700		17,850		24,150
3		14,700		16,800		22,050
4		14,700		12,600		13,650
5		14,700		9,450		12,600
Total		$73,500		$75,600		$100,800

Depreciation is computed by the straight-line method with no salvage value. The companys cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.

Your answer is correct. Compute the net present value for each project. (Round answers to Odecimal places eg 125 If the net present value is negative, use either a negative sign preceding the numbereg-45orparentheses eg (45) For calculation purposes use 5 decimal places as displayed in the facior table provided) Project Bono Project Edge Project Clayton Net present value 767767$ -6090.91 $ 4907 eTextbook and Media x Your answer is incorrect. Compute the annual rate of returnfor each project. (Hint Use average annual net income in your computation) (Round answers to 2decimal places eg. 1050) Project Bono Project Edge Project Clayton 998 | % Annual rate ofreturn 8.75 % 8.23 | 96