Andrews Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Lori Bart, staff analyst at Andrews, is preparing an analysis of the three projects under consideration by Corey Andrews, the company's owner. EEB (Click the icon to view the data for the three projects.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Because the company's cash is limited, Andrews thinks the payback method should be used to choase between the capital budgeting projects. a. What are the benefits and limitations of using the payback method to choose between projects? Bonefits of the payback method O A. Indicates whether or not the project will carn the company's minimum required rate of returr O B. Utilizes the time value of money and computes each project's unique rate of return O C. Easy to understand and captures uncertainty about expected cash flows in later years of a project D. All of the above Limitations of the payback method: OA. Fails to incorporate the time value of money and does not consider a project's cash flows after the payback period Enter any number in the edit fields and then continue to the next question Save for Later