Sanchez Corporation is considering three long-term capital investment proposals. Relevant data on each project are as follows.    Project   Brown  Red  YellowCapital investment $188,930 $218,690 $251,890Annual net income:      Year...

Sanchez Corporation is considering three long-term capital investment proposals. Relevant data on each project are as follows.

		Project
		Brown		Red		Yellow
Capital investment		$188,930		$218,690		$251,890
Annual net income:
Year 1		25,369		20,103		26,439
2		16,099		20,103		24,349
3		13,446		20,103		23,214
4		10,101		20,103		17,225
5		8,063		20,103		20,274
Total		$ 73,078		$100,515		$111,501

Salvage value is expected to be zero at the end of each project. Depreciation is computed by the straight-line method. The company’s minimum rate of return is the company’s cost of capital which is 12%.

Compute the annual rate of return for each project. (Round answers to 1 decimal place, e.g. 10.5%.)

		Annual rate of return
Project Brown		[removed]77.3	%
Project Red		[removed]91.9	%
Project Yellow		[removed]88.5	%