Cullumber 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		$162,000		$180,000		$202,000
Annual net income:
Year 1		14,700		18,900		28,350
2		14,700		17,850		24,150
3		14,700		16,800		22,050
4		14,700		12,600		13,650
5		14,700		9,450		12,600
Total		$73,500		$75,600		$100,800

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.)

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

Project Bono
Project Edge
Project Clayton

b) Compute NPV for each project

c) Compute the annual rate of return for each project

d) Rank the projects