Question 1 of 1 -/5 E 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 $176,000 Project Edge $192.500 Project Clayton $212,000 Capital investment Annual net income: Year 1 2 3 15,400 15,400 15,00 15,400 15,400 $77,000 19,800 18,700 17,600 13,200 9.900 $79,200 29.700 25,300 23.100 14,300 13,200 $105,600 4 5 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 PV table Compute the cash payback period for each project (Round answers to 2 decimal places, e.g. 10.50.) Project Bono 3.48 years Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono 3.48 years Project Edge 337 years Project Clayton 3.10 years e Textbook and Media Compute the net present value for each project. (Round answers to decimal places, c.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 $ -8043 6381 5016 e Textbook and Media Compute the annual rate of return 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 return 17,50 % 16,46 % 19.92 % e Textbook and Media Rank the projects on each of the foregoing bases. Which project do you recommend? Project Cash Payback Net Present Value Annual Rate of Return Bono Edge Clayton . The best project is