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 $174,400 Capital investment $190,750 $214,000 Annual net income: 19,620 Year 1 15,260 29,430 15,260 18,530 25,070 17,440 22,890 15,260 15,260 13,080 14,170 5 9,810 13,080 15,260 $104,640 $76,300 $78,480 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.)