Problem 24- 1A 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 Edge Project Clayton Project Bono $174,400 Capital investment $190,750 $218,000 Annual net income: Year 1 15,260 19,620 29,430 25,070 2 15,260 18,530 15,260 22,890 3 17,440 15,260 13,080 14,170 13,080 5 15,260 9,810 $104,640 $78,480 $76,300 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 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 provide d.) Project Clayton Project Bono Project Edge Net present value 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 Rank the projects on each of the foregoing bases. Which project do you recommend? Net Annual Cash Payback Project Present Value Rate of Return Bono Edge Clayton The best project is