0.25/1 INT Pharoah 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 $168.000 Capital investment Project Edge Project Clayton $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 0.25/1 III 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. (a) Your Answer Correct Answer Your answer is correct Compute the cash payback period for each project. (Round answers to 2 decimal places. es. 10.50.) 348 Project Bono years 330 years Project Edge o Su Your Answer Correct Answer Your answer is correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, eg. 10.50) Project Bono 3.48 years Project Edge 3.40 years 3:12 Project Clayton years Solution At 0.25/1 (b) Your Answer Correct Answer (Used) * Your answer is incorrect. Compute the net present value for each project. (Round answers to decimal places, es 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses es (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided) Project Bono Project Edge Project Clayton 875 s s 5 8.23 9.98 Net present value Solution Amated = (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, es 10.50%) Project Bono Project Edge Project Clayton Annual rate of return 36 Save torte Attempts: 0 of 1 used Submit Answer (d) The parts of the question must be completed in order this part will be available when you complete the part above PM