Problem 27-01A (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 $164,800 Project Edge Project Clayton 208,000 Capital investment Annual net income: Year 1 $180,250 14,420 14,420 14,420 14,420 14,420 18,540 17,510 16,480 12,360 9,270 27,810 23,690 21,630 12,360 Total 2,100 $74,160$98,880 Depreciation is computed by the straight ne method with no salvage value. The company's cost o apital is 15%. (Assume that cash flows occr evenly throughout the year) Click here to view PV table Compute the cash payback period for each project. (Round answers to 2 decimal places, eg, 1050) Project Bone Project Edge Project Clayton Activate Windows 3:23 P "2/9/201 BACK SPACE 8 9 4 ENTER SHIFT END ALT CTR P55-A520 CALCULATOR PRINTER VERSIONBAC LINK TO TEXT LINK TO TEXT LINK TO TEXT 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 ( 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 Conunt ahes wrn t rate of return foreaecte average annual net income in your computation.) Project Bono Project Edge Project Clayt Annual rate of return ivate Rank the projects on each of the foregoing bases. Which project do you recommend? HON DEL BACK OK 9 0 SPACE 7 ent CALCULATOR PRINTER VERSION BACK NEXT Annual rate of return LINK TO TEXT LINK TO TEXT LINK TO TEXT Rank the projects on each of the foregoing bases. Which project do you recon Net Present Value Annual Rate of Return Project Cash Payback Bono Edge Clayton The best project is VIDEO: SIMILAR PROBLEM ey accessing this Question Assistance,you swill bearn wbile you earn pounts based on the Point Potential Polcy set by Question Attempts: 0 of 3 used saVE OR LALER ^ 3-23 PM 2/9/201 8 9 0