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Marigold's Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,760. Each project will last for 3 years and produce
Marigold's Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,760. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $7,560 $10,800 $14,040 2 Unresolved 10,800 12,960 3 12,960 10,800 11,880 Total $30,240 $32,400 $38,880 The equipment's salvage value is zero, and Marigold uses straight-line depreciation. Marigold will not accept any project with a cash payback period over 2 years. Marigold's required rate of return is 12%. Click here to view PV table. (b) Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round final answers to the nearest whole dollar, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) AA 0.89286 BB 0.79719 CC 0.71178
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