Exercise 16-2 Martinez's Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,980. Each project wil last for 3 years and preduce the following net annual cash flows. 1 $7,630 $10,900 $14,170 9,810 10,900 13,080 13,080 10,900 11,990 Total $30,520 $32,700 $39,240 The equipment's salvage value is zaro, and Martinez uses straight-Ine depreciation. Martinez will not accept any project with a cash payback peradaer 2 years. Martinez's required rata of return is 12%. Compute each project's payback p period. (Round answers to 2 docimal places,e.g. 15.25) Which is the most desirable project? The most desirable project based on payback period is based on p Which is the least desirable project? The least desir able project based on payback period is Compute the net present va ae o each project. displayed in the factor table provided) Enter negative amounts using either a negative s gn preceding the mrn er eg. 45 or parentheses eg. 45). Round final answers to the nearest whole dollar, eg. 5 275. For ca cu ation purposes use 5 decim peaces as Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) years years years Which is the most desirable project? The most desirable project based on payback period is Which is the least desirable project? The least desirable project based on payback period is Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses displayed in the factor table provided.) Which is the most desirable project based on net present value? The most desirable project based on net present value is Which is the least desirable project based on net present value? The least desirable project based on net present value is