1. I already have the answer to the first part which is ... just need the second one which will be down below.

Compute each project's payback period. (Round answers to 2 decimal places, e.g. 52.75.)

		AA		BB		CC
Payback period		2.4 years		2.32 years		2.11years

Indicating the most desirable project and the least desirable project using this method.

Most desirable		Project CC
Least desirable		Project AA

Question: Cepeda 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.

Year		AA		BB		CC
1		$7,000		$9,500		$11,000
2		9,000		9,500		10,000
3		15,000		9,500		9,000
Total		$31,000		$28,500		$30,000

The equipment's salvage value is zero. Cepeda uses straight-line depreciation. Cepeda will not accept any project with a payback period over 2 years. Cepeda's minimum required rate of return is 12%.

2. Compute the net present value of each project. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

		AA		BB		CC
Net present value		$		$		$

Indicating the most desirable project and the least desirable project using this method.

Most desirable		Project CCProject BBProject AA
Least desirable		Project AAProject BBProject CC