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 $163,200 $178,500 $202,000 Annual net income: Year 1 14,280 18,360 27,540 2 14,280 17,340 23,460 3 14,280 16,320 21,420 4 14,280 12,240 13,260 5 14,280 9,180 12,240 Total $71,400 $73,440 $97,920 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.)

Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge years Project Clayton years negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value $ LINK TO TEXT LINK TO VIDEO 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 Project Clayton Annual rate of retum LINK TO TEXT LINK TO VIDEO Rank the projects on each of the foregoing bases, which project do you recommend? Cash Payback Net Annual Present Value Rate of Retum Project Bono Edge Clayton The best project is Click if you would like to show Work for this question: Open Show Work