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Ignment > Open Assignment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEX Exercise 25-02 (Video) Crane's Custom Construction Company is considering three new projects, each requiring
Ignment > Open Assignment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEX Exercise 25-02 (Video) Crane's Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,220. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $7,070 $10,100 $13,130 2 9 ,090 10,100 12,120 3 12,120 10,100 11,110 Total $28,280 $30,300 $36,360 The equipment's salvage value is zero, and Crane uses straight-line depreciation. Crane will not accept any project with a cash payback period over 2 years, Crane's required rate of return is 12%. Click here to view E table. (a) Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) years years years Which is the most desirable project? The most desirable project based on payback period is
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