Tanaka Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows.

The equipment's salvage value is zero. Tanaka uses straight-line depreciation. Tanaka will not accept any project with a payback period over 2 years. Tanaka's required rate of return is 12%.Instructions(a) Compute each project's payback period, indicating the most desirable project and the least desirable project using this method. (Round to two decimals.)(b) Compute the net present value of each project. Does your evaluation change? (Round to nearestdollar.)

Year CC AA BB $ 7,000 9,000 $ 9,500 $13,000 10,000 9,000 $32,000 2 9,500 15,000 $31,000 Total $28,500