View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. Doug's 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 flows. Year AA BB CC 1 $7,070 $10,100 $13,130 2 9,090 10,100 12,120 3 12,120 10,100 11,110 Total $28,280 $30,300 $36,360 The equipment's 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%. Click here to view the factor table. (a) Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) AA 2.5 years BB 2.20 years CC 1.75 years Which is the least desirable project? The least desirable project based on payback period is Project AA (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 eg. (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 -14 BB DAN 2,058 CC 7,093 Which is the most desirable project based on net present value? The most desirable project based on net present value is Project CC Which is the least desirable project based on net present value? The least desirable project based on net present value is Project AA e Textbook and Media Solution