Dougs Custom Construction Company is considering three new projects, each requiring an equipment investment of $24,200. Each project will last for 3 years and produce the following net annual cash flows.

Year		AA		BB		CC
1		$7,700		$11,000		$14,300
2		9,900		11,000		13,200
3		13,200		11,000		12,100
Total		$30,800		$33,000		$39,600

The equipments salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Dougs required rate of return is 12%. Click here to view PV table.

compute each projects payback period. (Round answers to 2 decimal places, e.g. 15.25.)

AA

BB

CC

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