Verdugo Corporation is considering three long-term capital investment proposals. Relevant data on each project are as follows. Project Brown Red Yellow Capital investment $190,000 $220,000 $250,000 Annual net income: Year 1 25,000 20,000 26,000 2 16,000 20,000 24,000 3 13,000 20,000 23,000 4 10,000 20,000 17,000 5 8,000 20,000 20,000 Total $72,000 $100,000 $110,000 Salvage value is expected to be zero at the end of each project. Depreciation is computed by the straight-line method. The company's required rate of return is the company's cost of capital which is 12%

Instructions A. Compute the annual rate of return for each project. (Round to one decimal.)