a and b)

c and d)

Cullumber 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 $161,000 Project Edge Project Clayton $175,000 $204.000 Capital investment Annual net income: Year 1 14,140 18.180 27,270 2 14,140 17,170 23.230 3 14,140 16,160 21.210 4 14.140 12,120 13,130 5 14,140 9,090 12,120 Total $70,700 $72.720 $96,960 Depreciation is computed by the straight-line method with no salvage valu The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view the factor table (a) Your answer is correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, es. 10.50.) Project Bono 347 years Project Edge 3.39 years Project Clayton 3.18 years e Textbook and Media Attempts: 1 of 5 used wo (b) Compute the net present value for each project. (Round answers to decimal places, es. 125. If the net present value is negotive, use either a negative sign preceding the number es-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 1.525 Net present value e Textbook and Media Attempts:0 of 5 used Submit Answer Save for Later Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answer places, e.g. 10,50.) Project Bono Project Edge Project Clayton Annual rate of return 96 LINK TO TEXT LINK TO TEXT LINK TO TY VIDEO SIMILAR PROBLEM Rank the projects on each of the foregoing bases. Which project do you recommend? Net Annual Project Cash Payback Present Value Rate of Return Bono Edge Clayton The best project is