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Cullumber's Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,080 Each project will last for 3 years and
Cullumber's Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,080 Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $7,980 $11,400 $14,820 2 10,260 11,400 13,680 3 13,680 11.400 12.540 Total $31,920 $34,200 $41,040 The equipment's salvage value is zero, and Cullumber uses straight-line depreciation. Cullumber will not accept any project with a cash payback period over 2 years. Cullumber's required rate of return is 12%. Click here to view the factor table (a) Compute each project's payback period. (Round answers to 2 decimal places, eg. 15.25) AA 88 years years
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