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Blossom 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

Blossom 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 $206,000
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

Depreciation is computed by the straight-line method with no salvage value. The companys cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view PV table.

(a)

Correct answer iconYour answer is correct.

Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.)

Project Bono enter the cash payback period in years rounded to 2 decimal places Answer-- 3.48 years
Project Edge enter the cash payback period in years rounded to 2 decimal places Answer -- 3.40 years
Project Clayton enter the cash payback period in years rounded to 2 decimal places Anawer 3.16 years

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(b)

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

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 eg -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 $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places

A part is done already need answer for part B

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