Problem 12-1A (Part Level Submission) (Video) 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 $160,000 Project Edge $175,000 Project Clayton $200,000 Capital investment Annual net income: Year 1 2. 3 14,000 14,000 14,000 14,000 14,000 $70,000 18,000 17,000 16,000 12,000 9,000 27,000 23,000 21,000 13,000 12,000 $96,000 4 5 Total $72,000 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. (a) 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 3.17 years Click if you would like to Show Work for this question: Open Show Work (b) * Your answer is incorrect. Try again. 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 X x Net present value 17.50 16.46 19.2 Click if you would like to Show Work for this question: Open Show Work