Question: Bramble's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,500. Each project will last for 3 years and produce

Bramble's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,500. Each project will last for 3 years and produce the following net annual cash flows.

Year AA BB CC

1 $8,750 $12,500 $16,250

2 11,250 12,500 15,000

3 15,000 12,500 13,750

Total $35,000 $37,500 $45,000

The equipment's salvage value is zero, andBrambleuses straight-line depreciation.Bramblewill not accept any project with a cash payback period over 2 years.Bramble's required rate of return is 12%.

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