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few Policies -11 E current Attempt in Progress 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 $ 163,200 Project Edge Project Clayton $178,500 $204,000 Capital investment Annual net income: Year 1 27,540 2 3 14,280 14.280 14,280 14,280 14,280 $71,400 18,360 17,340 16.320 12,240 9,180 $73,440 4 23,460 21,420 13,260 12,240 $97.920 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, Question 14 of 14 > Compute the cash payback period for each project. (Round answers to 2 decimal places, eg. 10.50.) Project Bono years Project Edge years Project Clayton years e Textbook and Media Compute the net present value for each project. (Round answers to decimal places, eg. 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 Calc Project F...pdf V Project Bono - / 1 Annual rate of return Project Edge Project Clayton % % % e Textbook and Media Rank the projects on each of the foregoing bases. Which project do you recommend? Net Present Value Annual Rate of Return Project Cash Payback v Bono > Edge Clayton The best project is Calc Project FL...pdf IV

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