Modules WP Grades Question 15 --/20 Wiley Accounting Weekly Updates View Policies Current Attempt in Progress Account Discussions Conferences 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. Dashboard Collaborations Project Bono Project Edge Project Clayton WileyPLUS Support Courses Capital investment $168,000 $183,750 $202,000 Assignments Annual net income: Calendar Year 1 14,700 18,900 28,350 E Inbox 14,700 17.850 24.150 14,700 16,800 22.050 Get HELP 14,700 12,600 13,650 SOS 9,450 12,600 14,700 $73,500 Total $75,600 $100,800 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. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge years Project Clayton years e Textbook and Media WP Compute the net present value for each project. (Round answers to 0 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 Clayton Account Net present value $ Dashboard e Textbook and Media Courses Calendar 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 Clayton Inbox Annual rate of return Get HELP SOS e Textbook and Media Rank the projects on each of the foregoing bases. Which project do you recommend? Net Present Value Annual Rate of Return Project Cash Payback Bono Edge Clayton The best project is e Textbook and Media Modules WP Grades Question 15 --/20 Wiley Accounting Weekly Updates View Policies Current Attempt in Progress Account Discussions Conferences 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. Dashboard Collaborations Project Bono Project Edge Project Clayton WileyPLUS Support Courses Capital investment $168,000 $183,750 $202,000 Assignments Annual net income: Calendar Year 1 14,700 18,900 28,350 E Inbox 14,700 17.850 24.150 14,700 16,800 22.050 Get HELP 14,700 12,600 13,650 SOS 9,450 12,600 14,700 $73,500 Total $75,600 $100,800 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. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge years Project Clayton years e Textbook and Media WP Compute the net present value for each project. (Round answers to 0 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 Clayton Account Net present value $ Dashboard e Textbook and Media Courses Calendar 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 Clayton Inbox Annual rate of return Get HELP SOS e Textbook and Media Rank the projects on each of the foregoing bases. Which project do you recommend? Net Present Value Annual Rate of Return Project Cash Payback Bono Edge Clayton The best project is e Textbook and Media