Problem 24-1A (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	$168,000	$183,750	$210,000
Annual net income:
Year1	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 company?s cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view PV table.

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(a) Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.)

Project Bono		years
Project Edge		years
Project Clayton		years

Table3Present Value of 1 (n) 4% 5% Periods 1 0.96154 0.95238 2 0.92456 0.90703 3 0.889 0.86384 4 0.8548 0.8227 5 0.82193 0.78353 6 0.79031 0.74622 7 0.75992 0.71068 8 0.73069 0.67684 9 0.70259 0.64461 10 0.67556 0.61391 11 0.64958 0.58468 12 0.6246 0.55684 13 0.60057 0.53032 14 0.57748 0.50507 15 0.55526 0.48102 16 0.53391 0.45811 17 0.51337 0.4363 18 0.49363 0.41552 19 0.47464 0.39573 20 0.45639 0.37689 6% 7% 8% 9% 10% 11% 12% 0.9434 0.89 0.83962 0.79209 0.74726 0.70496 0.66506 0.62741 0.5919 0.55839 0.52679 0.49697 0.46884 0.4423 0.41727 0.39365 0.37136 0.35034 0.33051 0.3118 0.93458 0.87344 0.8163 0.7629 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 0.47509 0.44401 0.41496 0.38782 0.36245 0.33873 0.31657 0.29586 0.27615 0.25842 0.92593 0.85734 0.79383 0.73503 0.68058 0.63017 0.58349 0.54027 0.50025 0.46319 0.42888 0.39711 0.3677 0.34046 0.31524 0.29189 0.27027 0.25025 0.23171 0.21455 0.91743 0.84168 0.77218 0.70843 0.64993 0.59627 0.54703 0.50187 0.46043 0.42241 0.38753 0.35554 0.32618 0.29925 0.27454 0.25187 0.23107 0.21199 0.19449 0.17843 0.90909 0.82645 0.75132 0.68301 0.62092 0.56447 0.51316 0.46651 0.4241 0.38554 0.35049 0.31863 0.28966 0.26333 0.23939 0.21763 0.19785 0.17986 0.16351 0.14864 0.9009 0.81162 0.73119 0.65873 0.59345 0.53464 0.48166 0.43393 0.39092 0.35218 0.31728 0.28584 0.25751 0.23199 0.209 0.18829 0.16963 0.15282 0.13768 0.12403 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 0.28748 0.25668 0.22917 0.20462 0.1827 0.16312 0.14564 0.13004 0.11611 0.10367 7% 8% 9% 10% 11% 12% .93458 1.80802 2.62432 3.38721 4.10020 4.76654 5.38929 5.97130 6.51523 7.02358 7.49867 7.94269 8.35765 8.74547 9.10791 9.44665 9.76322 10.05909 .92593 1.78326 2.5771 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 .91743 1.75911 2.5313 3.23972 3.88965 4.48592 5.03295 5.53482 5.99525 6.41766 6.80519 7.16073 7.4869 7.78615 8.06069 8.31256 8.54363 8.75563 .90909 1.73554 2.48685 3.16986 3.79079 4.35526 4.86842 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 .90090 1.71252 2.44371 3.10245 3.6959 4.23054 4.7122 5.14612 5.53705 5.88923 6.20652 6.49236 6.74987 6.98187 7.19087 7.37916 7.54879 7.70162 .89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 5.9377 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 Table4Present Value of an Annuity of 1 (n) 4% 5% 6% Payments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 .96154 1.88609 2.77509 3.62990 4.45182 5.24214 6.00205 6.73274 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 11.11839 11.6523 12.16567 12.6593 .95238 1.85941 2.72325 3.54595 4.32948 5.07569 5.78637 6.46321 7.10782 7.72173 8.30641 8.86325 9.39357 9.89864 10.37966 10.83777 11.27407 11.68959 .94340 1.83339 2.67301 3.46511 4.21236 4.91732 5.58238 6.20979 6.80169 7.36009 7.88687 8.38384 8.85268 9.29498 9.71225 10.1059 10.47726 10.8276 19 20 13.13394 12.08532 11.15812 10.3356 9.6036 13.59033 12.46221 11.46992 10.59401 9.81815 8.95012 9.12855 8.36492 8.51356 7.83929 7.96333 7.36578 7.46944 15% 0.86957 0.75614 0.65752 0.57175 0.49718 0.43233 0.37594 0.3269 0.28426 0.24719 0.21494 0.18691 0.16253 0.14133 0.12289 0.10687 0.09293 0.08081 0.07027 0.0611 15% .86957 1.62571 2.28323 2.85498 3.35216 3.78448 4.16042 4.48732 4.77158 5.01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95424 6.04716 6.12797 6.19823 6.25933