#4

U3 Compary is contidering three lane term capilal inwestment propocals. Each inwestment han w usehil life of 5 years. Relevant data on each project are as follawn. Degreciation is computed by the straicht -ine method with no salvage value. The comgamrs cost of capital is 1sx Usiume that cash fons occur evenly throughout the year) Cion here to view the factor tabie Compnot the cash pwhack period for each project iReund antweri to 2 decimal ploces, rs, 10.50.) es (45). Far calculatioe parmeces, wse 5 decimal iloces as afsptayed in the factar tabie provided.) Compute the anmual rate of return for each project. (Hint Use average annual inet income in your computation) (Round anrwers to 2 decimal places, eg, 10.50x.) Rark the projects on each of the for egoing bases. Which project do you recommend