This is from Wiley I would appreciate work to be shown so I can work it on my own later on if need be if you have any questions please ask.

4/30/2016 Problem 26-5A Problem 265A U3 Company is considering three longterm capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Capital investment $164,800 Annual net income: Project Edge Project Clayton $180,250 $204,000 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 straightline 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. Click here to view PV of Annuity table. 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 Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 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 places as displayed in the factor table provided.) Project Bono Net present value $ http://edugen.wileyplus.com/edugen/student/mainfr.uni Project Edge $ Project Clayton $ 1/2 4/30/2016 Problem 26-5A 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. 10.50.) Project Bono Annual rate of return Project Edge % Project Clayton % % Rank the projects on each of the foregoing bases. Which project do you recommend? Project Cash Payback Net Present Value Annual Rate of Return Bono Edge Clayton The best project is . Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/student/mainfr.uni 2/2