Compute the annual rate of return for each project

Project Bono

Project Edge

Project Clayton

Question 3 of 3 4/16 Oriole Company is considering three iong-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 Annual net income: Year 1 2 3 4 5 -Total $165,000 14,840 14,840 14,840 14,840 14,840 $74,200 $186,000 19,080 18,020 16,960 12,720 9,540 $76,320 $214,000 28,620 24,380 22,260 13,780 12,720 $101,760 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.)