stion list K Question 1 Question 2 Hafners Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $10,000,000 for the year Linda Baker, staff analyst at Hafners, is preparing an analysis of the three projects under consideration by Conan Hafners, the company's owner (Click the icon to view the data for the three projects.) Present Value of $1 table Read the requirements. Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Question 3 Question 4 Requirement budgeting proj a. What are the Question 5 Data table Requirements 1. Benefits of the A. Utilizes 2. B. Indicate Easy 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? Baker thinks that projects should be selected based on their NPVS. Assume all cash flows occur at the end of the yea 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 1 A 2 Projected cash outflow 3 Net initial investment 4 Projected cash inflows B C Project A Project B D Project C $ 5,100,000 $5,000,000 $6,000,000 $ 2,750,000 $ 3,200,000 $ 3,200,000 5 Year 1 6 Year 2 7 Year 3 8 Year 4 9 Required rate of return. x Print Done 2,750,000 1,400,000 3.200.000 2,750,000 1,200,000 250,000 2,750,000 125,000 Clear all Check answer 8% 8% 8% EPID ENG 51) 12:04 PM 12/17/2022