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 $172,800 Project EdgeProject Clayton $206,000 Capital investment Annual net income: Year 1 $189,000 15,120 15,120 15,120 15,120 15,120 $75,600 19,440 18,360 17,280 12,960 9,720 $77,760 29,160 24,840 22,680 14,040 12,960 $103,680 4 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.) X Your answer is incorrect. Try again. 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 Clayton Annual rate of return 0.09 0.08 0.11 Click if you would like to Show Work for this question: Open Show Work