Consider the following three projects. All three have an initial investment of $800,000.

Requirements
1. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback.
2. Are there other factors that should be considered in addition to the payback period?

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Net Cash Inflows Project L Project N Project M Annual Annual Accumulated Accumulated Annual Accumulated Year $ 100,000 $ 400,000 $ 100,000 $ 200,000 $ 200,000 $ 400,000 100,000 200,000 250,000 450,000 400,000 800,000 800,000 100,000 300,000 350,000 100,000 1,200,000 400,000 400,000 100,000 500,000 500,000 1,700,000 100,000 600,000 100,000 700,000 100,000 8. 800,000