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 $ 161,600 $176,750 $204,000 Annual net income: Year 1 14,140 18,180 27,270 14,140 17,170 23,230 14,140 16,160 21,210 14,140 12,120 13,130 14,140 9,090 12,120 Total $70,700 $72,720 $96,960 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 PV table. Your answer is correct. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono 3.48 years Project Edge 3.40 years Project Clayton 3.18 years e Textbook and Media Your answer is correct. Compute the net present value for each project. (Round answers to O decimal places, e.g. 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 Net present value $ (5859) | $ (7385) | $ 1525 e Textbook and Media * Your answer is incorrect. Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, e.g. 10.50.) Project Bono Project Edge 8.23% [ 8.75% Project Clayton 9.51 % Annual rate of return eTextbook and Media Your answer is correct. Rank the projects on each of the foregoing bases. Which project do you recommend? Net Present Value Annual Rate of Return Project Cash Payback Bono Edge Clayton The best project is Clayton 4