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Exercise 24-2 Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,060. Each project will last for 3 years

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Exercise 24-2 Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,060. Each project will last for 3 years and produce the following net amu cash flows. Year 1 2 3 BB CC $8,610 $12,300 $15,990 11,070 12,300 14,760 14,760 12,300 13,530 $34,440 $36,900 $44,280 Total 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%. here to view.pr.table (a) Compute each project's payback period. (Round answers to 2 decimat places, 0.9.15.28.) M years Ba years CC Which is the most desirable project? The most desiradi project based on payback period is which is the last desirable project? The least desirable project based on payback period is (b) Compute the net present value of each project. (Enterogative amounts wing either a negative in preceding the number of parenthesese..(45). Round Hinatanewer to the nearest whole dollar, c. 5,275. For calculation purpose, we decimal places as displayed in the factor table provided.) NA Yoa CC years which is the most desirable project? The most desirable project based on payback period is Which is the last desirable project? The last desirable project based on payback penodis (b) Compute the net present value of each project. (Enter negative amounts on either a negative in preceding the number eg. 45 or parentheses (45). Hound final anwers to the nearest whole dollar, e.g. 5,278. For calculation purposes se decimal place as displayed in the factor table provided.) AA which is the most desirable project based on represent value The most desirable project based on net present altid Which in the last desirable project based on ne present value The last desirable project based on not presenta Click if you would like to show Work for this questioni On Show Work

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