at is the net present value of the investment? (CMA-Canada adapted) Problems: Set A P12.1A (LO 1,2, 5), AN U3 Company is consideri investment has a useful life of 5 years. Relevant data on each project are as follows. ng three long-term capital investment proposals. Each Compute payback, and net present v annual rate of re Project Bono Project Edge Project Clayton Excel Capital investment Annual net income: Year 1 $160,000 $175,000 $200,000 14,000 14,000 14,000 14,000 14,000 70,000 18,000 17,000 16,000 12,000 9,000 72,000 27,000 23,000 21,000 13,000 12,000 $ 96,000 4 Total Depreciation is computed by the straight-line method with no salvage value. The company's cost of cap- ital is 15%. (Assume that cash flows occur evenly throughout the year.) Instructions a. Compute the cash payback period for each project. (Round to two decimals.) b. Compute the net present value for each project. (Round to nearest dollar.) c. Compute the annual rate of return for each project. (Round to two decimals.) (Hirnt b. E $(7,312); C $2,163 Use a annual net income in your computation.) d. Rank the projects on each of the foregoing bases. Which project do you recommend? Compute annual rate of reru Service Writing ting Lon Timur is an accounting major at a midwestern state