ch 27 q1

Attempts: Zof usea Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation) (Round answers to 2 decimal places, 23. 10.50%) Project Bono Project Edge Project Clayton Annual rate of return * %6 e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d) The parts of this question must be completed in order. This part will be available when you complete the part above Carla Vista 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 $176.000 $191,000 $218,000 Annual net income: Year 1 15.260 19.620 29,430 2 15.260 18,530 25.070 3 15.260 17 440 22890 4 15.260 13,080 14,170 5 15,260 9,810 13,080 Total $76,300 $78,480 $104,640 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 evenly throughout the year)