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 | | $174,400 | | $190,750 | | $214,000 | | Annual net income: | | | | | | | | Year 1 | | 15,260 | | 19,620 | | 29,430 | | 2 | | 15,260 | | 18,530 | | 25,070 | | 3 | | 15,260 | | 17,440 | | 22,890 | | 4 | | 15,260 | | 13,080 | | 14,170 | | 5 | | 15,260 | | 9,810 | | 13,080 | | Total | | $76,300 | | $78,480 | | $104,640 | | Depreciation is computed by the straight-line method with no salvage value. The companys cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view the factor table. | | | |