Dougs Custom Construction Company is considering three new projects, each requiring an equipment investment of $24,420. Each project will last for 3 years and produce the following net annual cash flows.

Year	AA	BB	CC
1	$7770	$11100	$14430
2	9990	11100	13320
3	13320	11100	12210
Total	$31080	$33300	$39960

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%.

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

BB __________ years

CC __________ 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.) AA__________

BB__________

CC__________