q8 Crane 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. Capital investment Annual net income: Year 1 2 (a) 3 4 5 Total Project Bono Click here to view PV table. $164,800 14.420 14,420 14,420 14,420 14.420 $72,100 Project Edge Your Answer Correct Answer (Used) $180,250 18.540 17,510 16,480 12,360 9,270 $74,160 Project Clayton $204.000 27,810 23,690 21,630 13.390 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.) 12,360 $98.880

Crane Company is considering three long-term capital imvestment proposals. Each investment has a useful life of 5 vears. Relevant data on each project are as follows. Depreciation is computed by the straight-line method with no salvace value. The compunys cost of capital is 15%. Assume that cash flows occur evenly throughout the years Click here to view PV table. Correct Answer (Used) - Your answer is partially correct. Compute the cash payback period for each project. (Round enswers to 2 decimal ploces, es: 10.50.) Project Bono Project Edge Project Clayton years years years Vour answer is correct. Compute the net present value for each project. (Round answers to 0 decimoi ploces, es 125. If the net presmt value is neguthe, use either a nejative sign precedirg the number os 45 or parentheses es (45). For calaulation purposes, use 5 decimal ploces as displayed in the foctor table provided) Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation) (Round answers tis 2 decimal plocer, eg 10.50%