Question 6 Tanaka Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,500. Each project will last for 3 years and produce the following cash inflows. Year 1 2 3 Total $ 7,380 9,390 15,000 $31,770 BB $ 9,730 9,730 9,730 29,190 CC $15,800 11,200 9,150 $36,150 The equipment's salvage value is zero. Tanaka uses straight-line depreciation. Tanaka will not accept any project with a payback period over 2 years. Tanaka's required rate of return is 11%. (a) Compute each project's payback period, indicating the most desirable project and the least desirable project using this method. (Round Payback to 1 decimal place, e.g. 6.5.) Payback Period Project AA years Project BB years Project CC years (b) Compute the net present value of each project. Does your evaluation change? (Round net present value to 0 decimal places, e.g. 5,800.) The net present value Project AA $ Project BB $ Project CC