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Business, 09.12.2019 19:31 guazet7650

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 $164,800 $180,250 $206,000
annual net income:
year 1 14,420 18,540 27,810
2 14,420 17,510 23,690
3 14,420 16,480 21,630
4 14,420 12,360 13,390
5 14,420 9,270 12,360
total $72,100 $74,160 $98,880
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.)
1. compute the cash payback period for each project. (round answers to 2 decimal places, e. g. 10.50.)
2. compute the net present value for each project. (round answers to 0 decimal places, e. g. 125.)

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