Dougs Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,960. Each project will last for 3 years and produce the following net annual cash flows.

Year		AA		BB		CC
1		$8,260		$11,800		$15,340
2		10,620		11,800		14,160
3		14,160		11,800		12,980
Total		$33,040		$35,400		$42,480

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 _______