E10-5 Summer Company is considering three capital expenditure projects. Relevant data for the projects are as follows.

E10-5 Summer Company is considering three capital expenditure projects. Relevant data for the projects are as follows. ProjectInvestmentAnnual IncomeLife of Project22A$240,000$15,0006 years23A 270,000 24,4009 years24A 280,000 21,0007 yearsAnnual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Summer Company uses the straight-line method of depreciation.Instructions(a)