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Ivanhoe 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

Ivanhoe 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. Capital investment Annual net income: Total Year 1 2 5 Project Bono Project Edge Project Bono $170,000 Project Clayton 14,980 14,980 14,980 eTextbook and Media 14,980 Click here to view the factor table. 14,980 $74,900 Project Edge $188,000 19,260 18,190 17,120 12,840 9,630 $77,040 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.) years Project Clayton $206,000 years 28,890 Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) years 24,610 22,470 13,910 12,840 $102,720 Compute the net present value for each project. (Round answers to O 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
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Ivanhoe 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. 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) Clickhere to view the factor table: Compute the cash payback period for each project (Round answers to 2 decimal places, es, 10.50) Project Bono Project Edge Project Clayton years years years eTextbook and Media Compute the net present value for each project. (Round answers to 0 decimal places, es: 125. If the net present value is negative, use Compute the net present value for each project. (Round answers to 0 decimal places, eg. 125. If the net present volue is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, vee 5 decimal places as displioned in the factor table provided.) eTextbook and Media Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation) (Round answers to 2 decimal places, es, 10,50\%) eTextbook and Media Rank the projects on each of the foregoing bases. Which project do you recommend

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