Current Attempt in Progress $($a$)$

Compute each project's payback period. $($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

AA

Payback period

BB

years

CC

years

years

years

Indicating the most desirable project and the least desirable project using this method.

Most desirable

Least desirable

eTextbook and Media

Assistance Used

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Ayayai Manufacturing Company is considering three new projects, each requiring an equipment investment of $$28,900.$ Each project

will last for $3$ years and produce the following cash flows.

The salvage value for each of the projects is zero. Ayayai uses straight$-$line depreciation. Ayayai will not accept any project with a

payback period over $2\mathrm{.}3$ years. Ayayai's minimum required rate of return is $12\%.$

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