Problem 25-01A 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 | | Project Edge | Project Clayton | | Capital investment | | $171,200 | | $187,250 | | $208,000 | | Annual net income: | | | | | | | | Year 1 | | 14,980 | | 19,260 | | 28,890 | | 2 | | 14,980 | | 18,190 | | 24,610 | | 3 | | 14,980 | | 17,120 | | 22,470 | | 4 | | 14,980 | | 12,840 | | 13,910 | | 5 | | 14,980 | | 9,630 | | 12,840 | | Total | | $74,900 | | $77,040 | | $102,720 | | Depreciation is computed by the straight-line method with no salvage value. The companys cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view the factor table. | | | |