-/5 U3 Company is considering three long-term capital Investment proposals. Each investment has a useful life of 5 years. Relevant dat on each project are as follows. Project Bono $171,200 Project Edge $187.250 Project Clayton $202.000 Capital investment Annual net income: Year 1 2 3 14.980 14,980 14.980 14.980 14,980 $74.900 19.260 18,190 17,120 12,840 9.630 28,890 24,610 22.470 13,910 12.840 $102.720 5 Total $77,040 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 v table Compute the cash payback period for each project. (Round answers to 2 decimal places, s. 10.50) Project Bono Project Edge years Project Clayton years MacBook Air 7 %6 5 6 & 7 8 R T T Y U 1 D F G H J K eTextbook and Media Compute the net present value for each project.(Round answers to decimal places, eg. 125. If the net present value is negative, use either a negative sin preceding the number 45 or parentheses ex (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided) Project Bono Project Edge Project Clayton Net present value eTextbook and Media Compute the multe of return for each project, Mint Use average annual net income in your computation) Round anwers to 2 decimal places, s. 10.SON) Project Bono Project Edge Project Clayton Annual rate of return eTextbook and Media MacBook Air so 5 % 5 6 & 7 W 70 T Y U O P D F G H J K X V B. N M 46 od 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.. 10.50%.) Project Bono Project Edge Project Clayton Annual rate of return % %6 eTextbook and Media Rank the projects on exh of the foregoing bases. Which project do you recommend? Cash Payback Net Present Value nnual Rate of Return Project Bono Edge + Clayton The best projects eTextbook and Media MacBook Air so 5 4 % 5