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 $171,200 Project Edge $187.250 Project Clayton $208,000 Capital investment Annual net income: Year 1 2 3 14,980 14,980 14.980 14.980 14.980 $74.900 19,260 18,190 17,120 12,840 9,630 $77,040 28,890 24.610 22.470 13,910 12.840 $102,720 4 5 Total 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. 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 Compute the net present value for each project. (Round answers to 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 $ $ e Textbook and Media Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, eg. 10.50%.) Project Bono Project Edge Project Clayton Annual rate of return % % % Rank the projects on each of the foregoing bases. Which project do you recommend? Cash Payback Net Present Value Annual Rate of Return Project Bono Edge