View Policies Current Attempt in Progress -/10 E Bridgeport Manufacturing Company is considering three new projects, each requiring an equipment investment of $23.200. Each project will last for 3 years and produce the following cash flows, Year AA BB CC 1 $7.400 $9.900 $11.400 2 9.400 9.900 10,400 3 15,400 9,900 9.400 Total $32,200 $29.700 $31.200 The salvage value for each of the projects is zero. Bridgeport uses straight-line depreciation. Bridgeport will not accept any project with a payback period over 2.2 years. Bridgeport's minimum required rate of return is 12%. Click here to view PV tables (a) Compute each project's payback period (Round answers to 2 decimal places, s. 52.75) Question 3 of 7 - / 10 (a) Compute each project's payback period. (Round answers to 2 decimal places, eg. 52.75.) AA BB CC Payback period years years years Indicating the most desirable project and the least desirable project using this method, Most desirable Least desirable e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Attempt in Progress Crane Company is considering two different, mutually exclusive capital expenditure proposals. Project will cost $450,000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by $73,500. Project will cost $274,000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by $46,800. A discount rate of 9% is appropriate for both projects. Click here to view the factor table Compute the net present value and profitability index of each project. If the net present value is negative, use either a negative sign preceding the number 3-45 or parentheses es (45). Round present value answers to decimal places, es 125 and profitability index answers to 2 decimal places, es 15.25. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Net present value - Project A $ Profitability Index - Project A Net present value - Project B $ Profitability index. Projects Which project should be accepted based on Net Present Value should be accepted -/6 Net present value - Project A Profitability index - Project A Net present value - Project B $ Profitability index - Project B Which project should be accepted based on Net Present Value? should be accepted Which project should be accepted based on profitability index? should be accepted. e Texthonk and Media