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Consider the following three projects. All three have an initial investment of $800,000. Click the icon to view the investments.) Requirements 1. Determine the payback

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Consider the following three projects. All three have an initial investment of $800,000. Click the icon to view the investments.) 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? Project L Year Annual Accumulated Year 1 $ 100.000 S 100,000 $ Year 2 100.000 200,000 Year 3 100,000 300.000 Year 4 100,000 400,000 Year 5 100 000 500.000 Year 6 100 000 600.000 Year 7 100.000 700 000 Year 8 100.000 800,000 Net Cash Inflows Project M Project N Annual Accumulated Annual Accumulated 150,000 $ 150,000 S 400,000 $ 400,000 200,000 350,000 400,000 800,000 250,000 600,000 200,000 800,000 250 000 1.050.000 years Requirement 1. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback First, determine the payback period of each project (Enter the payback period as a numeral) Payback period in Project Project L years Project M years Project N years Now, rank the projects from most desirable to least desirable based on payback Projects - Most to least desirable Requirement 2. Are there other factors that should be considered in addition to the payback period? O A No The payback period is the only quantitative factor necessary for a comparison of investments OB. Yes The company should consider which projects will generate cash flows after the payback period in addition, the company should rank the promis based on the results of others present value profitability index, and intemal rate of return) and possible qualitative factors O.C. No. The payback period is the only qualitative factor necessary for a comparison of investments

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