considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows Compute annual rate of return, cash payback, and net present value. Project Project Project Bono Edge Clayton Capital $160,000 $175,000 $200,000 investment Annual net income: Year 1 14,000 18,000 27,000 2 14,000 17,000 23,000 14,000 16,000 21,000 14,000 12,000 13,000 14,000 9.000 12,000 Total $ 70,000 $ 72,000 $ 96,000 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.) Instructions 3 4 5 a. Compute the cash payback period for each project. (Round to two decimals.) b. Compute the net present value for each project. (Round to nearest dollar.) b. E $(7,312); C $2,163 c. Compute the annual rate of return for each project. (Round to two decimals.) (Hint: Use average annual net income in your computation.) d. Rank the projects on each of the foregoing bases. Which project do you recommend