Crane 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 $163.000 Project Edge Project Clayton $175.000 $204,000 Capital investment 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 company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view the factor table. (a) Your Answer Correct Answer Your answer is correct Compute the cash payback period for each project. (Round answers to 2 decimal places, eg. 10.50.) Project Bono 3.47 years Project Edge 3.37 years Project Clayton 3.16 years Compute the not present value for each project. (Round answers to o decimal places, c.g. 125. If the net present value is negative, use either a negative sign preceding the number eg 45 or parentheses e (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 TEXT LINK TO TEXT VIDEO SIMILAR PROBLEM Compute the annual rate of return for each project. (Hint: Use average na net income in your computation.) (Round answers to 2 decimal places, eg. 10.50.) Project Dono Project Edge Project Clayton Annual rate of return LINE TO TEXT LINK TO TEXT LINK TO TEXT VIDEO SIMILAR PROBLEM Rank the projects on each of the foregoing bases. Which project do you recommend? Net Annual Project Cash Payback Present Value Rate of Return Bona Edge Clayton The best project is