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 $176,000 Project Edge Project Clayton $192,500 $212,000 Capital investment Annual net income Year 1 2 3 15,400 15,400 15,400 15.400 15,400 $77,000 19,800 18.700 17,600 13.200 9.900 $79.200 29,700 25,300 23,100 14,300 13,200 $105,600 4 5 Total Depreciation is computed by the straight line method with no salvage value. The company's cost of capital 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, eg. 10.50.) Project Bono years Project Edge years Project Clayton years