Exercise 12-2 Z Your answer is partially correct. Try again. Dougs Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,220. Each project will last for 3 years and produce the following net annual cash rlows. Year AA BB CC 1 $7,070 $10,100 $13,130 9,090 10,100 12,120 10 $28,280 $30,300 $36,360 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. Doug's required rate of return is 12%. CIick iew PV table. (a) Compute each projects payback period. (Round answers to 2 decimal piaces, e.g. 15.25.) years Which is the most desirable project? The most desirable project based on pay back period is TProieet CCT