Question: Show Attempt History Current Attempt in Progress U3Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant
Show Attempt History Current Attempt in Progress U3Company 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 company's cost of capital is 15% (Assume that cash flows occur evenly throughout the year) Click here to view the factor table (a) Compute the net present value for each project. (Round answers to O 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 place an displayed in the factor table provided.) Project Bono Net present value $ Project Edge Project Clayton
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