Project Bono Project Edge Project Clayton Capital investment $168,000 $183,750 $202,000
Annual net income:
Year 1 14,700 18,900 28,350
2 14,700 17,850 24,150
3 14,700 16,800 22,050
4 14,700 12,600 13,650
5 14,700 9,450 12,600
Total $73,500 $75,600 $100,800

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.)

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(a)

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