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 $171,200 Project Edge $187.250 Project Clayton $206,000 Capital investment Annual net income: Year 1 2 3 14.980 14,980 14,980 14.980 14,980 $74,900 19,260 18,190 17.120 12,840 9.630 $77,040 28,890 24,610 22,470 13,910 12,840 $102.720 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.) Your answer is correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, eg. 10.50) Project Bono 3.48 years Project Edge 3.40 years Project Clayton 3.12 years x Your answer is incorrect. Compute the net present value for each project. (Round answers to decimal places, eg. 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 $ 37450 34240 $ Net present value 41200