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JUST PART C PLEASE Problem 26-1A (Part Level Submission) U3 Company is considering three long-term capital investment proposals. Eachinvestment has a useful life of 5
JUST PART C PLEASE
Problem 26-1A (Part Level Submission) U3 Company is considering three long-term capital investment proposals. Eachinvestment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $172,800 $189,000 $214,000 Annual net income: Year 1 15,120 19,440 29,160 15,120 18,360 24,840 15,120 17,280 22,680 15,120 12,960 14,040 15,120 9,720 12,960 Total $75,600 $77,760 $103,680 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.) Your answer is correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono 3.48 years Project Edge 3.40 years Project Clayton 3.16 Years SHOW SOLUTIONSHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: APPLIED SKILLS Attempts: 3 of 3 used (b) Your answer is correct 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 Bono Project Edge Project Clayton Net present value -6265 s 7897 s 2995 SHOW SOLUTIONSHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: APPLIED SKILLS Attempts: 1 of 3 used (c) 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 Edge Project Bono Project Clayton Annual rate of returnStep by Step Solution
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