doug’s custom construction company is considering three new projects, each requiring an equipment investment of $22,610. each project will last for 3 years and produce the following net annual cash fl

Project Description:

doug’s custom construction company is considering three new projects, each requiring an equipment investment of $22,610. each project will last for 3 years and produce the following net annual cash flows.

year aa bb cc
1 $9,639 $12,555 $15,589
2 12,376 12,555 12,019
3 17,969 12,555 13,209
total $39,984 $37,665 $40,817


the equipment’s salvage value is zero, and doug uses straight-line depreciation. doug will not accept any project with a cash payback period over 2 years. doug’s required rate of return is 12%. (refer the below table)


compute each project’s payback period. (round answers to 2 decimal places, e.g. 15.25.)

aa years
bb years
cc years


which is the most desirable project?

the most desirable project based on payback period is


which is the least desirable project?

the least desirable project based on payback period is
Skills Required:
Project Stats:

Price Type: Negotiable

Completed
Total Proposals: 2
1 Current viewersl
14 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.9
    73 Jobs 54 Reviews
    $50 in 0 Day
  • 4.6
    16 Jobs 9 Reviews
    $0 in 0 Day