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Carla Vista's Custom Construction Company is considering three new projects, each requiring an equipment investment of $26.400. Each project will last for 3 years
Carla Vista'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 BB CC 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 Carla Vista uses straight-line depreciation. Carla Vista will not accept any project with a cash payback period over 2 years. Carla Vista's required rate of return is 12%. Click here to view PV table. Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number eg.-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 BB CC 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
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