Problem 16-1 Indigo 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 $164,800 Project Edge $180,250 Project Clayte Capital investment Annual net income Year 1 $204,000 14,420 14,420 14,420 14,420 14,420 72,100 18,540 17,510 16,480 12,360 9,270 $74,160 27,810 23,690 21,630 13,390 12,360 $98,880 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) Compute the cash payback period for each project. (Round answers to 2 decimmal places, e.g. 10.50 Project Bono Project Edge Project Clayton years years years answers to 0 decimul places, e9. 125, If the net present valae is negative, use either a negative sign preceding the number e.g. 45 or purposes, use S decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value Compute the annual rate of return for each project. (Hit: Use average annual net income in your computation.) (Rund answers to 2 decimal places, eg. 10.50.) Project Bono Project Edge Project Clayton Annual rate of retun Rank the projects on each of the foregoing bases. Which project do you recommend? Project Cash Payback Present Value Rate of Return Bono Edge Clayton Net Annual The best project s