Cullumber's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,500. Each project will last for 3 years and produce the following net annual cash flows. Year 1 2 3 AA BB CC (b) AA $8,750 Total $350000 $37.500 BB 11.250 15.000 BB AA $ The equipment's salvage value is zero, and Cullumber uses straight-line depreciation. Cullumber will not accept any project with a cas payback period over 2 years. Cullumber's required rate of return is 12%. Click here to view PV table. $12,500 $16,250 12,500 Compute each project's payback period. (Round answers to 2 decimal places, eg. 15.25.) Which is the most desirable project? S 12.500 $ Which is the least desirabloject? CC 15,000 13.750 $45.000 The most desirable project based on payback period is The least desirable project based on payback period is years A years 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, eg 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided) years 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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