Exercise 26-12 Tanaka Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. AA BD CC 1 $ 7,000 $ 9,500 $13,000 2 9,000 9,500 10,000 3 15,000 9,500 9,000 Total $31,000 28,500 $32,000 The equipment?s salvage value is zero. Tanaka uses straight-line depreciation. Tanaka will not accept any project with a payback period over 2 years. Tanaka?s required rate of return is 12%. (a) Compute each project?s payback period, indicating the most desirable project and the least desirable project using this method. (Round to two decimals.) (Round Payback to 1 decimal place, e.g. 6.5.) Payback Period Project AA years Project BD years O Project CC years E (b) Compute the net present value of each project. Does your evaluation change? (Round net present value to 0 decimal places, e.g. 5,800.) (b) The net present value Project AA $ _______ Project BD $ __________ Project CC $