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 $168,000 Project Edge $183,750 Project Clayton $202,000 Capital investment Annual net income: Year 1 14,700 14,700 14,700 14,700 14,700 $73,500 18,900 17,850 16,800 12,600 9,450 $75,600 28,350 24,150 22,050 13,650 12,600 $100,800 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 Project Edge Project Clayton Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative years years years 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 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 return Rank the projects on each of the foregoing bases. Which project do you recommend? Net Present Value Annual Rate of Return Project Bono Edge Clayton Cash Payback The best project is