Sarasota Custom Construction Company Is Considering Three New Projects, each requiring an equipment investment of $25,000. Each project will last for 3 Years and Produce The Following Net Annual Cash Flows.

The Equipment Salvage Value Is Zero, & Sarasota Uses Straight-line Depreciation. Sarasota Will Not Accept Any Project With A Can Period Over 2 Years. Sarasota's Required Rate of Return Is 12%.

(A) Compute Each Project's Payback Period. AA- BB- CC-

Which Is Most Desirable? Which Is Least Desirable?

(B) Compute the Net Present Value of Each Project

AA- BB- CC-

Which Is Most Desirable Project? Which Is Least Disirable?

RESOURCES work Exercise 16-2 Sarasota's Custom Construction Company is considering three new proje Year iew 16-3 6-9 16-11 6-3 ? 1$8,050 $11,500 $14,950 2 10,350 11,500 13,800 3 13,800 11,500 12,650 Total $32,200 $34,500 $41,400 re ults by ctive The equipment's salvage value is zero, and Sarasota uses straight-ine deprediation, Sarasota Click here to view Py table. Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) years 8B years Which is the most desirable project? The most desirable project based on payback period is Which is the least desirable project? The least desirable project based on payback period is t present value of each project. (Enter negative amounts using either a negatiu decimal places as displaved in the factor table prov Cc Which is the most desirable project based on net present value? The most desirable project based on net present value i which is the least desirable project based on net present value The least desirable project based on net present value is