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 Project Edge Project Clayton Capital investment $168.000 $183.750 $210.000 Annual net income Year 1 14.700 18.900 28.350 2 14 700 17.850 24.150 14 700 16,800 22.050 14 700 12.600 13.650 5 14,700 9450 12,600 Total $73,500 $75.600 $100.800 3 4 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capitalis 15%. (Assume that cash flows occur evenly throughout the year Compute the cash payback period for each project. (Round answers to 2 decimal places, eg. 10.50) 3.48 years Project Bono Project Edge Project Clayton 3.40 years 3.12 years 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 -767768 Net present value S Project Clayton 490720 -5090.903 Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, es 10.50%) Project Bono Project Edge Project Clayton Annual rate of return 175 96 19.96 % 16.469