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BA ES CALCULATOR PRINTER VERSION Problem 25-01A U3 Company is considering three long-term capital investment proposals. Each Investment has a useful life of 5 years.

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BA ES CALCULATOR PRINTER VERSION Problem 25-01A U3 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 Project Edge Project Clayton Capital investment $164,800 $180,250 $204,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 3 14,420 16,480 21,630 4 14,420 12,360 13,390 5 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 dy 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 avenly throughout the year.) Click here to view the factor table Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge years Project Clayton years LINK TO TEXT LINK TO VIDEO Compute the net present value for each project. (Round answers to o decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the nur -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value $ LENK TO TEXT LINK TO VIDEO BAB CALCULATOR PRINTER VERSION Compute the net present value for each project. (Round answers to o decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value LINK TO TEXT LINK TO VIDEO 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 Bono Project Edge Project Clayton Annual rate of return 96 LINK TO TEXT LINK TO VIDEO Rank the projects on each of the foregoing bases. Which project do you recommend? Project Net Cash Payback Present Value Annual Rate of Return Bono Edge 1 3 : Clayton 2 . The best project is Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO

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