Sheridan 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		Project Edge	Project Clayton
Capital investment		$172,000		$190,000		$214,000
Annual net income:
Year1		15,120		19,440		29,160
2		15,120		18,360		24,840
3		15,120		17,280		22,680
4		15,120		12,960		14,040
5		15,120		9,720		12,960
Total		$75,600		$77,760		$103,680

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.) .

(a)Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.)

Project Bono	3.46		years
Project Edge	3.4		years
Project Clayton	3.16		years

b) 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 (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

		Project Bono		Project Edge		Project Clayton
Net present value		?		?		?

c. Compute the Annual rate of return for each project ( use average annual ner income in your computation)

-Annual rate of return - bono? edge? clayton?

Project Cash payback Net present value Annual rate of return

Bono ? ? ?

Edge ? ? ?

Clayton ? ? ?

The best project is _____________ ?