Problem 12-1A (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 $176,000 Project Edge $192,500 Project Clayton $212,000 Capital investment Annual net income: Year 1 15,400 15,400 15,400 15,400 15,400 $77,000 19,800 18,700 17,600 13,200 9,900 $79,200 29,700 25,300 23,100 14,300 13,200 $105,600 Total 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 Compute the net present value for each project. (Round answers to o decimal places, c.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 LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO. SIMILAR PROBLEM 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 Bono Project Edge Project Clayton Annual rate of return LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Rank the projects on each of the foregoing bases. Which project do you recommend? Project Cash Payback Net Annual Present Value Rate of Return Bono Edge Clayton The best project is Click if you would like to Show Work for this question: Open Show Work