Exercise 24-2 Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,500. Each project will last for 3 years and produce the following net annual cash flows. Year AA $8,750 $16,250 $12,500 11,250 2 12,500 15,000 12,500 15,000 13,750 3 Total $35,000 $45,000 $37,500 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'ss required rate of return is 12%. Click here to view PV table. () Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) AA years years years Which is the most desirable project? The most desirable project based on payback period is Which is the least desirable project