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 $190,000 Project Clayton $214,000 Capital investment $172,000 Annual net income: Year 1 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.) Click here to view the factor table. Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, eg. 10.50%.) Project Bono Project Edge Project Clayt Annual rate of return % % e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer Rank the projects on each of the foregoing bases. Which project do you recommend? Net Present Value Cash Payback Annual Rate of Return Project Bono Edge Clayton The best project is Show transcribed image text