Thomas's Custom Manufacturing Company is considering three new projects. Each one requires an equipment investment of $$26,900,$

will last for three years, and will produce the following net annual cash flows:

The equipment's salvage value is zero, and Thomas uses straight$-$line depreciation. Thomas will not accept any project with a payback

period longer than two and a half years. Thomas's required rate of return is $12\%.$

Click here to view the factor table.

Calculate each project's payback period, using average annual cash flows. $($Round answers to $2$ decimal places, e$.$g$.10\mathrm{.}50$ and use

average annual cash flows in your calculations.$)$

Identify the most desirable project and the least desirable project using this method.

Most desirable project

Least desirable project

Calculate the net present value of each project. $($If the answer is negative, use either a negative sign preceding the number e$.$g$.-5,275$ or

parentheses e$.$g$.(5,275).$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided, e$.$g$.1\mathrm{.}25124$ and final

answers to $0$ decimal places, e$.$g$.5,275.)$

Does your evaluation change?