Dougs Chstom Construction Company

Hor H216: 11216 ACCT 102 C-HY2 Managerial Accounting / Ch23 to Ch24 Extra Credit Exercise 24-2 Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,300. Each project wl lat for 3 years and producethe following net annual cash flows Year AA 8B 1$8,050 $11,500 $14,950 2 10,350 11,500 13,800 3 13,800 11,500 12,650 Total $32,200 $34,500 341,400 The equipment's salvage value is zero, and Doug uses straight-line depreciation. Doug wil not here to view PV table. v accept any project with a cash payback period over 2 years. Doug's required rate of return is 12%. Cick Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25) 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 peried ibs parentheses e.o.(4.nd nal ansers to the Computs the net present value of each project. (Enter negative anounts asing either a neootive sion areceding the avnber eg 4s on nearest whole dolar, Sa ( d in the factor table proided e.q. 5.275. For cakculation purposes, use 5 declmal places as displaye Which is the most desirable project bated se net present value