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having trouble with BB and CC (in red) Exercise 26-2 Your answer is partially correct. Doug's Custom Construction Company is considering three new projects, each
having trouble with BB and CC (in red)
Exercise 26-2 Your answer is partially correct. Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,880. Each project will last for 3 years and produce the following net annual cash flows. Year $7,280 $10,400 $13,520 2 9,360 10,400 12,480 12,48010,400 11,440 Total $29,120 $31.200 $37,440 3 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 table. Compute each project's payback period. (Round answers to 2 decimal places, e.g.15.25.) 2.50 years 2.20 years 1.75 yearsStep by Step Solution
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