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Need help fast! will upvote. Thanks Cheyenne Manufacturing Company is considering three new projects, each requiring an equipment investment of $23,500. Each project will last
Need help fast! will upvote. Thanks
Cheyenne Manufacturing Company is considering three new projects, each requiring an equipment investment of $23,500. Each project will last for 3 years and produce the following cash flows. Year AA BB CC 1 $7,500 $10,200 $11,500 2 9,500 10,200 10,500 3 15,500 10,200 9,500 Total $32,500 $30,600 $31,500 The salvage value for each of the projects is zero. Cheyenne uses straight-line depreciation. Cheyenne will not accept any project with a payback period over 2.2 years. Cheyenne's minimum required rate of return is 12%. Compute each project's payback period. (Round answers to 2 decimal places, e.g. 52.75.) BB CC Payback period years years years Indicating the most desirable project and the least desirable project using this method. Most desirable Least desirableStep by Step Solution
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