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24-2 Exercise 24-2 Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $26,400. Each project will last for 3

24-2
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Exercise 24-2 Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $26,400. Each project will last for 3 years and produce the following net annual cash flows. Year AA 1 $8,400 $12,000 $15,600 2 10,800 12,000 14,400 3 14,400 12,000 13,200 Total $33,600 $36,000 $43,200 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 hereto view table. 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

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