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Cranes 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

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Cranes 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 Lisa Berenstein, staff analyst at Cranes, is preparing an analysis of the three projects under consideration by Conan Cranes, the company's owner (Click the icon to view the data for the three projects.) (Click the icon to view the Future Value of Annuity of $1 factors.) (Click the icon to view the Future Value of $1 factors.) (Click the icon to view the Present Value of Annuity of $1 factors) (Click the icon to view, the Present Value of $1 factors.) Read the requirements Requirement 1. Because the company's cash is limited, Cranes thinks the payback method should be used to choose between the capital budgeting projects Calculate the payback period for each of the three projects. ignore income taxes. (Round your answers to two decimal places.) Project A years Project B years Project C years Using the payback method, which project(s) should Cranes choose? onstruction 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 a Berenstein, staff analyst at Cr ick the icon to view the data for th bConan Canes, the company's owner. Data Table nuity of $1 factors.) Table icon to view the Future Va nnuity of $1 factors.) lick the icon to view the Present V Project A Project B Project he requirements Projected cash outflow Net intial investment 3,000,000 s 2,100.000 s 3,000,000 n the capital budgoting projects late the payback period for each of Projected cash inflows ct A years Year 1 1.200,000 $ 1,200,000 $ 1,700,000 200,000600,0001,700,000 200,000 500,000200,000 ect B years Year 2 ectC years Year 3 g the payback method, which project Year 4 1,200,000 00,000 Required rate of return 6% 6% 6% Print Done ter any number in the edit fields and then continue to the next

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