Rosco Manufacturing Company is considering three new projects, each requiring an equipment investment of $20,000. Each project will last for 3 years and produce the following cash inflows. Year 1 2 3 Total AA $7,000 9,000 15,000 $31,000 BB CC $9,600 $11,000 9,600 10,000 9,600 9,000 $28,800 $30,000 The equipment's salvage value is zero. Rosco uses straight-line depreciation. Rosco will not accept any project with a payback period over 2 years. Rosco's minimum required rate of return is 12%. 1. Compute each project's payback period. 15 points 2. Compute the net present value of each project using the above table. 15 points 3. Which method is most desirable using the payback period method? 2.5 points 4. Which method is most desirable using the net present value method? 2.5 points