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Chris's Custom Manufacturing Company is considering three new projects, each requiring an equipment investment of $24,890. Each project will last for 3 years and produce
Chris's Custom Manufacturing Company is considering three new projects, each requiring an equipment investment of $24,890. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 10854 14137 17554 2 13936 14137 13534 3 20234 14137 14874 Totals 45024 42411 45962 Compute each project's payback period, indicating the most desirable project and the least desirable project using this method. (Round answers to 2 decimals, e.g. 10.50, and assume in your computations that cash flows occur evenly throughout the year.) AA?_________years BB?_________years CC?_________years Compute the net present value of each project (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round computations and final answer for present value to 0 decimal places, e.g. 125. Round computations for Discount Factor to 5 decimal places.) AA$_________? BB$_________? CC$_________?
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