Exercise 12-2 (Video) Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,760. Each project will last for 3 years and produce the following net annual cash flows. Year AA 1 BB $7,560 $10,800 $14,040 CC 2 9,720 10,800 12,960 3 12,960 10,800 11,880 Total $30,240 $32,400 $38,880 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. 15.25.) 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