This is for the course capital budgeting and financial modeling.

2. - Projects A, B, and C each have an expected life of five years. - Given the initial cost and annual cash flow information below, what is the payback period for each project? (9 points) What are the disadvantages for payback methods (6 points). A B Cost S80 $120 $150 Cash Flow $25 $30 $35 3. You have researched several possibilities and come up with the following cash flow estimates (including the cost of purchasing the property) for two investments. Which investment should you choose if you only can pick one? Show your work. (10 points) Project Used Book Store Clothing Store Initial Investment $250,000 $500,000 First-Year Cash Flow $55,000 $125,000 Growth Cost of Rate Capital 4% 8% 7% 12%