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Crane's Custom Construction Company is considering three new projects, each requiring an equipment investment of $ 2 7 , 2 8 0 . Each project

Crane's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,280. Each
project will last for 3 years and produce the following net annual cash flows.
The equipment's salvage value is zero, and Crane uses straight-line depreciation. Crane will not accept any project with a cash payback
period over 2 years. Crane's required rate of return is 12%. Click here to view PV table.
(a)
Compute each project's payback period. (Round answers to 2 decimal places, e.g.15.25.)
AA
years
BB
years
CC
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
(b)
Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or
parentheses e.g.(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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