Ayayai 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. References IOds 4% 5% 6% -7% 8% y% -10% 11% 12% 15% Project Bono $168,000 Project Edge $183,750 Project Clayton Capital investment Annual net income: Year 1 $202,000 0 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.04000 1.05000 1.06000 1.07000 1.08000 1.09000 1.10000 1.11000 1.12000 .15000 1.08160 .10250 1.12360 1.14490.16640 1.18810 1.21000 1.23210 1.25440 1.32250 1.12486 .15763 1.19102 1.22504 1.25971 1.29503 1.33100 1.36763 1.40493 1.52088 4 1.16986 1.21551 1.26248 1.31080 1.36049 1.41158 1.46410 1.51807 1.57352 .74901 1.21665 1.27628 1.33823 1.40255 1.46933 .53862 1.61051 1.68506 1.76234 2.01136 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. | 6 1.26532 1.34010 1.41852 1.50073 1.58687 1.677 10 1.77156 1.87041 1.97382 231306 1.31593 1.40710 1.50363 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 8 136857 147746 1.59385 1.71819 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 1.42331 1.55133 .68948 1.83846 1.99900 2.17189 2.35795 2.55803 2.77308 3.51788 0 1.48024 1.62889 1.79085 1.96715 2.15892 2.36736 2.59374 2.83942 3.10585 4.04556 1.53945 1.71034 1.89830 2.10485 2.33164 2.58043 2.85312 3.15176 3.47855 4.65239 1.60103 1.79586 2.01220 2.25219 2.51817 2.81267 3.13843 3.49845 3.89598 5.35025 1.66507 1.88565 2.13293 2.40985 2.71962 3.06581 3.45227 3.88328 4.36349 6.15279 4 1.73168 1.97993 2.26090 2.57853 2.93719 3.34173 3.79750 4.31044 4.8871 7.07571 1.80094 2.07893 2.39656 2.75903 3.17217 3.64248 4.17725 4.78459 5.47357 8.13706 6 187298 2.18287 2.54035 2.95216 3.42594 3.97031 4.59497 5.31089 6.13039 9.35762 1.94790 2.29202 2.692773.15882 3.70002 4.32763 5.05447 5.89509 6.86604 10.76126 8 2.02582 2.40662 2.85434 3.37993 3.99602 4.71712 5.55992 6.54355 7.68997 12.37545 2.10685 2.52695 3.02560 3.61653 4.31570 5.14166 6.11591 7.26334 8.61276 14.23177 0 2.19112 2.65330 3.20714 3.86968 4.66096 5.60441 6.72750 8.06231 9.64629 16.36654 14,700 14,700 14,700 14,700 14,700 S73,500 18,900 7,850 16,800 12,600 9,450 $75,600 28,350 24,150 22,050 13,650 12,600 $100,B00 Total (Assume that cash flows occur evenly throughout the year.) Click here to view PV table Compute the cash payback period for each project. (Round answers to 2 decimal places, c.g. 10.50.) Project Bono Project Edge Project Clayton years ears Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number e.g.-45 or parentheses e.g (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value 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.g. 10.50.) Project BonoProject Edge Project Clayton Annual rate of return Rank the projects on each of the foregoing bases. Which project do you recommend? Net Annual Project Cash Payback Present Value Rate of Returrn Bono Edge Clayton Table 2 Future Value of an Annuity of 1 The best project is