Dougs Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,880. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $7,280 $10,400 $13,520 2 9,360 10,400 12,480 3 12,480 10,400 11,440 Total $29,120 $31,200 $37,440 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%.

(a) Compute each projects payback period.