I NEED HELP ON QUESTION 1 PART b. , AND QUESTIONS 2 & 3

Halls Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $12,000,000 for the year. Lydia Baker, staff analyst at Halls, is preparing an analysis of the three projects under consideration by Calvin Halls, the company's owner. (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. Requirements 1. Because the company's cash is limited, Halls 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 Halls choose? Baker 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. 2. 3. Print Done i Data Table Project A Project B Project C Projected cash outflow Net initial investment $ 6,000,000 $ 4,000,000 $ 8,000,000 Projected cash inflows Year 1 $ Year 2 Year 3 Year 4 2,050,000 $ 1,100,000 $ 4,700,000 2,050,000 2,300,000 4,700,000 2,050,000 700,000 50,000 2,050,000 25,000 Required rate of return 8% 8% 8% Print Print Done]