Exercise 2 Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual Life of Project Investment Income Project 22A $ 240,000 $ 15,500 6 years 23A 270,000 20,600 9 years 24A 280,000 15,700 (Hint: You're given the annual income amount--you'll need to figure out the annual cash inflow. Remember, the difference bewteen the two amounts is the depreciation). 7 years Annual income is constant over the life of each project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation. Instructions Compute the ROI for each project. b. Compute the net present value for each project, assuming a cost of capital of 10%. c. Compute the internal rate of return for each project. a