Exercise 25-02 (Video) Waterway'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. BB CC Year 1 2 3 Total AA $8,750 11,250 15,000 $35,000 $12,500 12,500 12,500 $37,500 $16,250 15,000 13,750 $45,000 The equipment's salvage value is zero, and Waterway uses straight-line depreciation. Waterway will not accept any project with a cash payback period over 2 years. Waterway's required rate of return is 12%. Click here to view. Pltable (a) Compute each project's payback period. (Round answers to 2 decimal places, c.9. 15.25.) Year BB years 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 Compute the net present value of each project. (Enter negative amounts using alther a negative sign preceding the number 45 or parentheses (45) Round inal answers to the nearest whole dollar, .9. 5,275. For calculation purposes, use s decimal places as displayed in the factor table provided.) Which is the most desirabit 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