Jack's Custom Manufacturing Company is considering three new projects. Each one requires an equipment investment of $28,200. will last for three years, and will produce the following net annual cash flows: Year AA BB 1 $8,120 $11,136 $15,080 2 10,440 11,136 10,440 3 13,920 11,136 12,760 Total $32,480 $33,408 $38,280 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%. Click here to view PV table. (a) Your Answer Correct Answer -Your answer is partially correct. Calculate each project's payback period, using average annual cash flows. (Round answers to 2 decimal places, e.g. 10.50.) Payback period Project AA Project BB Project CC 2.70 years 2.53 years 2.21 years Identify the most desirable project and the least desirable project using this method. Most desirable project Project CC Least desirable project Project AA