b. Based UIT TI c. Discuss other factors that H&W should consldel Ill Exercise 10-11A Evaluating discounted cash flow techniques Lucy Bennett is angry with Austin Lyte. He is behind schedule developing supporting material for tomorrow's capital budget committee meeting. When she approached him about his apparent ackadaisical attitude in general and his tardiness in particular, he responded, "I don't see why we do this stuff in the first place. It's all a bunch of estimates. Who knows what future cash flows will really be? I certainly don't. I've been doing this job for five years, and no one has ever checked to see if I even came close at these guesses. I've been waiting for marketing to provide the esti- mated cash inflows on the projects being considered tomorrow. But, if you want my report now, T'l have it in a couple of hours. I can make up the marketing data as well as they can." Required Does Mr. Lyte have a point? Is there something wrong with the company's capital budgeting system? Write a brief response explaining how to improve the investment evaluation system. Exercise 10-12A Determining the payback period Bailey Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $9,000,000; it will enable the company to increase its annual cash inflow by $3,000,000 per year. The plane is exnected to have a useful life of five years and no salvage value. The second plane costs