Blossoms Custom Construction Company is considering three new projects, each requiring an equipment investment of $24,640. Each project will last for 3 years and produce the following net annual cash flows.

Year		AA		BB		CC
1		$7,840		$11,200		$14,560
2		10,080		11,200		13,440
3		13,440		11,200		12,320
Total		$31,360		$33,600		$40,320

The equipments salvage value is zero, and Blossom uses straight-line depreciation. Blossom will not accept any project with a cash payback period over 2 years. Blossoms required rate of return is 12%. Click here to view PV table.

(a)

Compute each projects payback period. (Round answers to 2 decimal places, e.g. 15.25.)

AA		enter the number of years rounded to 2 decimal places	years
BB		enter the number of years rounded to 2 decimal places	years
CC		enter the number of years rounded to 2 decimal places	years

(b)

Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round final answers to the nearest whole dollar, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)