dougs custom construction
Exercise 12-2 (Video) Doug's 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 1 2 3 Total AA B $7,700 $11,000 9 ,900 11,000 13,200 11,000 $30,800 $33,000 CC $14,300 13,200 12,100 $39,600 The equipment's salvage value is zero, and Doug uses straight-ne depreciation Deve will not accept any project with a cahayback period over 2 years Doug's required rate of return is 12 here to vie Compute each project's payback period (Round answers to 2 decimal places, e.. 15.25.) years M years Which is the most desirable project? The most desirable project based on payback period is Project CC : Which is the least desirable project? The last desirable project based on payback period is Project AA Which is the least desirable project? The least desirable project based on payback period is Project AA : (b) Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number .g. -45 or parentheses eg. (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) 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 Click if you would like to show Work for this question Open Show Work VIDEO SIMILAR EXERCI LINK TO TEXT LINK TO TEXT Exercise 12-2 (Video) Doug's 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 1 2 3 Total AA B $7,700 $11,000 9 ,900 11,000 13,200 11,000 $30,800 $33,000 CC $14,300 13,200 12,100 $39,600 The equipment's salvage value is zero, and Doug uses straight-ne depreciation Deve will not accept any project with a cahayback period over 2 years Doug's required rate of return is 12 here to vie Compute each project's payback period (Round answers to 2 decimal places, e.. 15.25.) years M years Which is the most desirable project? The most desirable project based on payback period is Project CC : Which is the least desirable project? The last desirable project based on payback period is Project AA Which is the least desirable project? The least desirable project based on payback period is Project AA : (b) Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number .g. -45 or parentheses eg. (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) 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 Click if you would like to show Work for this question Open Show Work VIDEO SIMILAR EXERCI LINK TO TEXT LINK TO TEXT
