I need all subpart please..... U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of5 years. Depreciation is computed by the straight-line method with no salvage value. The company's cost ofcapital is 15%. (Assume that cash flows occur evenly throughout the year.) Relevant data on each project areas follows.Capital investment Annual net income:Year 12345TotalProject Bono$160,00014,00014,00014,00014,00014,000$70,000Project Edge$175,00018,00017,00016,00012,0009,000$ 72,000Project Clayton$200,00027,00023,00021,00013,00012,000$ 96,000Requirements1. Compute the cash payback period for each project. (Round to two decimals.)2. Compute the net present value for each project. (Round to nearest dollar.)3. Compute the annual rate of return for each project. (Round to two decimals.)4. Rank the projects on each of the foregoing bases. Provide a comparative chart and tell me which projectyou recommend and why.

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Description: I need all subpart please..... U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of5 years. Depreciation is computed by the straight-line method with no salvage value. The company's cost ofcapit

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U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. 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.) Relevant data on each project are as follows. Capital investment Annual net income: Year 1 2 2 Project Bono $160,000 14,000 14,000 14.000 Project Edge $175,000 18,000 17,000 16.000 Project Clayton $200,000 27,000 23,000 21.000

U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. 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.) Relevant data on each project are as follows. Capital investment Annual net income: Year 1 2 2 Project Bono $160,000 14,000 14,000 14.000 Project Edge $175,000 18,000 17,000 16.000 Project Clayton $200,000 27,000 23,000 21.000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 17E

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