Blossom Company is considering three long-term capital investment proposals. Each investment has a useful life of...

   

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Blossom 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. Capital investment Annual net income: Year 1 2 (a) 3 4 5 Total Click here to view PV table. Project Bono Project Bono $170,000 Project Edge Project Clayton 14,700 14,700 eTextbook and Media Save for Later 14,700 14,700 14,700 $73,500 Project Edge Project Clayton $185,000 $202,000 18,900 17,850 16,800 12,600 9,450 $75,600 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.) Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) years 28,350 years 24,150 years 22,050 13,650 12,600 $100,800 Attempts: 0 of 5 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above. Blossom 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. Capital investment Annual net income: Year 1 2 (a) 3 4 5 Total Click here to view PV table. Project Bono Project Bono $170,000 Project Edge Project Clayton 14,700 14,700 eTextbook and Media Save for Later 14,700 14,700 14,700 $73,500 Project Edge Project Clayton $185,000 $202,000 18,900 17,850 16,800 12,600 9,450 $75,600 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.) Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) years 28,350 years 24,150 years 22,050 13,650 12,600 $100,800 Attempts: 0 of 5 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.

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