# Doug’s Custom Construction Company is considering three new

### Question Description:

Doug’s Custom Construction Company is considering three new projects, each requiring an equipment investment of $24,200. Each project will last for 3 years and produce the following net annual cash flows. YearAABBCC 1$7,700 $11,000 $14,300 29,900 11,000 13,200 313,200 11,000 12,100 Total$30,800 $33,000 $39,600 The equipment’s salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug’s required rate of return is 12% Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round final answers to the nearest whole dollar, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)