Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $$22,000.$ Each

project will last for $3$ years and produce the following net annual cash flows.

The equipment's salvage value is zero, and Doug uses straight$-$line depreciation. Doug will not accept any project with a cash payback

period over $2$ years. Doug'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$.15\mathrm{.}25.)$

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.$)$