Oriole's Custom Construction Company is considering three new projects, each requiring an equipment investment of $$23,100.$ Each project will last for $3$ years and produce the following net annual cash flows.

$\backslash$table$[[$Year$,$AA$,$BB$,$CC$,],[1,$$$7,350,$$$10,500,$$$13,650,],[2,9,450,10,500,12,600,],[3,12,600,10,500,11,550,],[$Total$,$$$29,{400}_{?},$$$31,500,$$$$37,800,],[,,,,]]$

The equipment's salvage value is zero, and Oriole uses straight$-$line depreciation. Oriole will not accept any project with a cash payback period over $2$ years. Oriole's required rate of return is $12\%.$ Click here to view PV table.

$($a$)$

Compute each project's payback period. $($Round answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

AA $$ years

BB $$ years

$CC$ years

Which is the most desirable project?

The most desirable project based on payback period is $$

Which is the least desirable project?

Which is the least desirable project?

The least desirable project based on payback period is

$($b$)$

Compute the net present value of each project. $($Enter negative amounts using either a negative sign preceding the number eg$.-45$ 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.$)$

$AA$

BB $$

$CC$

Which is the most desirable project based on net present value?

The most desirable project based on net present value is $$

Which is the least desirable project based on net present value?

The least desirable project based on net present value is $$ eTextbook and Media

$$

Attempts: $0$ of $3$