n, cash . Excel P27.1A (LO 1, 2, 5) 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. Capital investment Annual net income: Year 1 2 3 5 Total Project Bono Project Edge Project Clayton $160,000 $175,000 $200,000 14,000 18,000 27,000 14,000 17,000 23.000 14,000 16,000 21,000 14,000 12,000 13,000 14,000 9,000 12,000 $ 70,000 $ 72,000 $ 96,000 Depreciation is computed by the straight-line method with no salvage value. The company's cost of cap- ital is 15%. (Assume that cash flows occur evenly throughout the year) Instructions a. Compute the cash payback period for the new hoist. b. Compute the annual rate of return for the new hoist. (Round to one decimal.)