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 $169,600 Project Edge $185,500 Project Clayton $214,000 Capital investment Annual net income: Year 1 WN 14,840 14,840 14,840 14,840 14,840 $74,200 19,080 18,020 16,960 12,720 9,540 $76,320 28,620 24,380 22,260 13,780 12,720 $101,750 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 the factor table. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge year's Project Clayton years Compute the net present value for each project. (Round answers to o 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 Net present value Compute the annual rate of retum 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 retum Rank the projects on each of the foregoing bases. Which project do you recommend? A . Project Cash Payback Net Annual Present Value Rate of Return Bono Edge Clayton The best project is