Oriole's Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,520. Each project will last for 3 years and produce the following net annual cash flows. Year 1 2 3 (a) AA BB CC AA Total $32,480 $34,800 $8,120 10,440 13,920 (b) BB 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 the factor table. AA $11,600 $15.080 11,600 BB 11,600 Compute each project's payback period. (Round answers to 2 decimal places, eg. 15.25.) Which is the most desirable project? CC Which is the least desirable project? CC 13.920 12.760 $41,760 The most desirable project based on payback period is years The least desirable project based on payback period is years years Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg. (45). Round final answers to the nearest whole dollar, eg. 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Project CC Project AA

Orioles Custom Contruction Compary is considering three new projects tach requirng an equipnent investment of 525.520 Eseh project witl tast for 3 years and produce the follewing net anmalcanh fova. (a) Which ir the inatesirblepried? (a) MA CC