Question $3$ of $3$

$/40$

$\backslash$table$[[,$Project Bono,Project Edge,Project Clayton$],[$Capital investment,$$164,800,$$$180,250,$$$204,000],[$Annual net income:$],[$Year $1,14,420,18,540,27,810],[2,14,420,17,510,23,690],[3,14,420,16,480,21,630],[4,14,420,12,360,13,390],[5,14,420,9,270,12,360],[$Total$,$$$72,100,$$$74,160,$$$98,880]]$

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.$)$

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$($a$)$

$($b$)$

$($c$)$

Compute the annual rate of return for each project. $($Hint: Use average annual net income in your computation.$)($Round answers to $2$ decimal places, e$.$g$.10\mathrm{.}50\%.)$

$\backslash$table$[[,$Project Bono,,Project Edge,,Project Clayton$],[$te of return,,$\%,,,]]$