# Payback Method Assignment

Clarabelles Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to \$9,000,000 for the year. Lyssa Bentley, the staff analyst at Clarabelles, is preparing an analysis of the three projects under consideration by Chuck Clarabelles, the company&#39;s owner. E: (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&#39;s cash is limited, Clarabelles 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 Clarabelles choose? 2. Bentley 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. 3. Which projects, if any, would you recommend funding? Briefly explain why. Print Done © Data Table Project A Project B Project C Projected cash outflow Net initial investment \$ 4,500,000 \$ 2,000,000 \$ 5,000,000 Projected cash inflows Year 1 \$ Year 2 1,500,000 \$ 1,500,000 1,500,000 1,500,000 600,000 \$ 2,700,000 1,300,000 2,700,000 500,000 150,000 75,000 Year 3 Year 4 Required rate of return 8% 8% 8% Print Done Requirement 1. Because the company&#39;s cash is limited, Clarabelles 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? Benefits of the payback method: OA. Utilizes the time value of money and computes each project&#39;s unique rate of return OB. Indicates whether or not the project will earn the company&#39;s minimum required rate of return O C. Easy to understand and captures uncertainty about expected cash flows in later years of a project OD. All of the above. .

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Military
Excellent Paper
Customer 456821, December 6th, 2022
SEO
Great work
Customer 463647, May 3rd, 2023
SEO
A job well done. Quite an improvement.
Customer 463679, March 30th, 2023
Geography
Good job. Adequate introduction and thesis, has cited evidence & satisafies the question in context.
Customer 463019, June 8th, 2022
Beauty
Good job. Always limit quoted content even when instructed to use them.
Customer 452441, March 31st, 2022
Military
good job
Customer 456821, October 8th, 2022
Computer science
Good paper approach.
Customer 462387, April 4th, 2022
SEO
A job well done
Customer 463679, April 30th, 2023
Nursing
Thanks a lot Peter
Customer 453199, March 28th, 2020
Other
Short and precise as I wanted. Thank you!
Customer 462359, October 14th, 2022
Public Administration
N/a
Customer 453751, June 28th, 2020
Home Repair & Home Maintenance
Well researched
Customer 463473, November 4th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat