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		$160,000		$175,000		$200,000
Annual net income:
Year 1		14,000		18,000		27,000
2		14,000		17,000		23,000
3		14,000		16,000		21,000
4		14,000		12,000		13,000
5		14,000		9,000		12,000
Total		$70,000		$72,000		$96,000

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.

Project Bono:

Project Edge:

Project Clayton:

Compute the net present value for each project. (Round computations and final answer for present value to 0 decimal places, e.g. 125. Round computations for Discount Factor to 5 decimal places. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)

Project Bono:

Project Edge:

Project Clayton:

Compute the annual rate of return for each project. (Round answers to 2 decimal places, e.g. 10.50. Hint: Use average annual net income in your computation.)

Project Bono:

Project Edge:

Project Clayton: