I only need help with Clayton's Net present value and Annual rate of return?

U3 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 BonoProject EdgeProject ClaytonCapital investment$164,800$180,250$208,000Annual net income:Year114,42018,54027,810214,42017,51023,690314,42016,48021,630414,42012,36013,390514,4209,27012,360Total$72,100$74,160$98,880

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.)

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

Project Bono3.48

yearsProject Edge3.40

yearsProject Clayton3.17

years

Your answer is partially correct.Try again.Compute the net present value for each project.(Round answers to 0 decimal places, e.g. 125.If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Project BonoProject EdgeProject Clayton

Net present value $-5975 -7531 ??????

Your answer is partially correct.Try again.Compute the annual rate of return for each project. (Hint:Use average annual net income in your computation.)(Round answers to 2 decimal places, e.g. 10.50.)

Project BonoProject EdgeProject Clayton Annual rate of return

17.50 16.46 ?????

Your answer is correct.Rank the projects on each of the foregoing bases. Which project do you recommend?

ProjectCash PaybackNet

Present ValueAnnual

Rate of ReturnBono3

2

2

Edge2

3

3

Clayton1

1

1

The best project isClayton

.

.