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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

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 $ 164,800 $ 180,250 $ 204,000
Annual net income:
Year 1 14,420 18,540 27,810
2 14,420 17,510 23,690
3 14,420 16,480 21,630
4 14,420 12,360 13,390
5 14,420 9,270 12,360
Total $ 72,100 $ 74,160 $ 98,880

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.)

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