Consider the following three projects. All three have an initial investment of $500,000.

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 Annual Accumulated Annua Accumulated Annual Accumulated 1 100,000 100,000 50,000 50,000 250,000 S 250,000 200,000 150,000 300,000 200,000 ,000 150,000 500,000 100,000 100,000 4 100,000 200,000 250,000 400,000 500,000 650,000 400,000 100,000 500,000 100,000 6,00 100,000 700,000 800,000 100,000