Consider the following three projects. All three have an initial investment of $ 600,000.

Requirements
1. Determine the payback period of each project. Rank the projects from most ­desirable to least desirable based on payback.
2. Are there other factors that should be considered in addition to the payback ­period?

Net Cash Inflows Project L Project M Project N Year An Accumulated Anal Accumulated Annual Accumulated $150,000 150,000 100,000 100,000 300,000 300,000 2 150,000 30,000 200,000 300,000300,000 600,000 3 150,000 450,000 300,000 600,000 4 150,000 600,000400,000 1,000,000 5 150,000 750,000 500,000 1,500,000 6 150,000 7 150,000 1,050,000 8 150,000 200,000 900,000