Dougs Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,540. Each project will last for 3 years and produce the following net annual cash flows. The equipments salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Dougs required rate of return is 12%. Compute each projects payback period.

Year		AA		BB		CC
1		$7,490		$10,700		$13,910
2		9,630		10,700		12,840
3		12,840		10,700		11,770
Total		$29,960		$32,100		$38,520