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please solve Ivanhoe's Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,300. Each project will last for 3 years
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Ivanhoe's Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,300. Each project will last for 3 years and produce the following net annual cash flows. The equipment's salvage value is zero, and Ivanhoe uses straight-line depreciation. Ivanhoe will not accept any project with a cash payback period over 2 years. Ivanhoe'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, eg. 15.25.) \begin{tabular}{|l|l} AA & years \\ \hline BB & years \\ \hline \end{tabular} Which is the most desirable project? The most desirable project based on payback period is Which is the least desirable project? The least desirable profect based on payback period is (b) Compute the net present value of each project. (Enter negative amounts wing either a negative sign preceding the number es. -45 or parentheses es. (45). Round final answers to the nearest whole dollor, es. 5,275. For calculation purposes, use 5 decimal ploces as displayed in the foctor tabie provided.) parentheses eg. (45). Round final answers to the nearest whole dollar, eg. 5,275. For calculation purposes, use 5 decimal ploces as displayed in the foctor 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 if Which is the least desirable project based on net present The least desimble project based on net present value is Step by Step Solution
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