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Show Attempt History Current Attempt in Progress 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 Bono $171,200 Project Edge $187.250 Project Clayton $202,000 Capital investment Annual net income: Year 1 2. 3 14.980 14.980 14.980 14,980 14.980 $74,900 4 19.260 18,190 17,120 12,840 9.630 $77,040 28,890 24,610 22,470 13,910 12,840 $102,720 5 Total 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 PV table Your answer is partially correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, 23. 10.50 Your answer is partially correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, eg. 10.50.) Project Bono 3.48 years Project Edge 3.4 years Project Clayton 284 years is incorrec Compute the net present value for each project. (Round answers to decimal places, eg. 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 Bono Project Edge Project Claytor Net present value $ $ $ e Textbook and Media Assistance Used Compute the annual rate of return for each project.(Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, eg. 10.50%.) Project Bono Project Edge Project Clay Annual rate of return % % eTextbook and Media Assistance Used + HW-Chapter 12 0 Question 3 of 3 Assistan e Textbook and Media X Your answer is incorrect Rank the projects on each of the foregoing bases. Which project do you recommend? Project Cash Payback Net Annual Present Value Rate of Return Bono Edge Clayton The best project is e Textbook and Media Assistance 25

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