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Consider the following three projects. All three have an initial investment of $700,000. IClick the icon to view the investments.) Requirements Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback. Are there other factors that should be considered in addition to the payback period? Requirement 1. Determine the payback period of each project Rank the projectts from most desirable to least desirable based on payback First, determine the payback peniod of each project. (Enter the payback period as a numeral.) Project Payback period Project L years Project M years Project N years Now, rank the projects from most desirable to least desirable based on payback Projects-Most to least desirable Requirement 2. Are there other factors that should be considered in addition to the payback period? O A. No. The payback period is the only qualitative factor necessary for a comparison of investments O B. Yes The company should consider which projects will generate cash flows after the payback period. In addition, the company should rank the pr O C. No. The payback period is the only quantitative factor necessary for a comparison of investments. X Data Table Net Cash Inflows Project L Project M Project N any s Year Annual Accumulated alue, profita Annual Accumulated Annual Accumulated 1 87,500 $ 87,500 $ 37 500 $ 37,500 S 350,000 $ 350,000 2 87,500 175,000 87,500 125,000 350 000 700 000 3 87,500 262,500 137 500 262 500 87,500 350,000 437 500 700,000 5 87,500 437,500 537 500 1237,500 87,500 525,000 6 7 87,500 612,500 87,500 700,000 Print Done

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