Hafners 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 Bickerson, staff analyst at Hafners, is preparing an analysis of the three projects under consideration by Cullin Hafners, the company's owner. (Click the icon to view the data for the three projects.) (Click the icon to view the Future Value of $1 factors.) (Click the icon to view the Future Value of Annuity of $1 factors.) (Click the icon to view the Present Value of $1 factors.) (Click the icon to view the Present Value of Annuity of \$1 factors.) Read the requirements. Requirement 1. Because the company's cash is limited, Hafners thinks the payback method should be used to choose between the capital budgetingbrojects. Calculate the payback period for each of the three projects. Ignore income taxes. (Round your answers to two decimal places.) Data table Data table Because the company's cash is limited, Hafners thinks the payback method should be used to choose between the capital budgeting projects. a. What are the benefits and limitations of using the payback method to choose between projects? b. Calculate the payback period for each of the three projects, Ignore income taxes. Using the payback method, which projects should Hafners choose? Bickerson thinks that projects should be selected based on their NPVs. Assume all cash flows occur at the end of the year except for initial investment amounts. Calculate the NPV for each project. Ignore income taxes. Which projects, if any, would you recommend funding? Briefly explain why