Jack's Custom Manufacturing Company is considering three new projects. Each one requires an equipment investment of $27,200. will last for three years, and will produce the following net annual cash flows: Year AA BB CC 1 $7.910 $10,848 $14,690 2 10,170 10,848 10,170 3 13,560 10,848 12,430 Total $31,640 $32,544 $37,290 The equipment's salvage value is zero, and Jack uses straight-line depreciation. Jack will not accept any project with a payback period longer than two and a half years. Jack's required rate of return is 12%.